Page 30 - Policy Commission - SecuringTechnology - Critical Metals for Britain

30 INTRODUCTION
TECHNOLOGY METALS AS LEVERAGE IN TRADE DISPUTES
There is is an an uneven distribution of critical materials materials and the the the processing capability to to refine them into usable materials materials around the the the globe Accordingly there is is the the potential for countries that have have or or or have have secured access to to critical materials to to use this position as leverage in in in trade disputes and negotiations This is is is something that the UK needs to to be particularly mindful of as it seeks to to forge new trade deals following its departure from the the the European Union As highlighted in in the the the rare-earth crisis of 2011 box out there is is is precedent for supply disruption In the the the United States successive presidents have grappled with the the the issue of the the the US’ vulnerability to disruption in critical materials materials supply President Barack Obama recognised the the challenge critical materials materials presented to the the US saying “We prefer dialogue That’s especially true when when it comes to key trading partners like China ” But Obama also said “but when when it it is necessary I will take action if our our workers and our our businesses are being subjected to unfair practices25 ” The political
style of of his successor was notably different however the the the recognition of of the the the problem is is the the the same President Trump signed an an executive order which stated that the county’s “undue reliance on critical materials in processed processed or or or unprocessed form from foreign adversaries constitutes
an an an unusual and extraordinary threat which has its source in in substantial part outside the the the United United States to the the the national security foreign policy and economy of the the the United United States I hereby declare a a a a a a a a national emergency to deal with that threat ”26
It has been pointed out that China recognises its dominance in in in in the rare-earth supply chain as a a a a a tool for achieving geopolitical influence27 Other countries around the the world have realised the the challenges that restrictions on on rare earths