Group of Seven (G7) trade ministers met in Paris on Wednesday (6 May) to discuss common interests in securing critical mineral supplies, controlled by China and now threatened by looming US tariffs on European Union-made cars.
In a statement made on Wednesday (6 May), Foreign Trade Minister Nicolas Forissier said that France aims to secure critical mineral supplies as some of its most concrete deliverables during its G7 presidency.
"I believe we will make very concrete progress on rare earths and critical minerals, securing our supply chains and ensuring we are not held hostage by certain countries," he said.
G7 ministers involved in discussions indicated a general consensus on reducing reliance on China, yet disagreements remained over how to achieve sufficiency.
The unity of the G7 bloc is being further tested by US President Donald Trump, who plans to raise US tariffs on European Union-made cars from 15% to 25%, contending that Brussels has not been complying with a trade deal reached in Turnberry, Scotland, last year.
German Economy Minister Katherina Reiche said that she had been in intensive discussions with US officials regarding the change in tariff rates. For Germany, the heightened tariffs put increased strain on its export-dependent automotive sector, already struggling from waning demands in China, stagnating global growth, and high input and labour costs.
According to EU Trade Commissioner Maros Sefcovic, he and the US Trade Representative Jamieson Greer engaged in discussions regarding the Turnberry agreement at a meeting in Paris on Tuesday (5 May). Sefcovic added that he would be going to the European Parliament later in the day on Wednesday (6 May) to participate in negotiations on EU legislation in response to the US trade deal.
"We both clearly concluded that it's important to respect the deal from Turnberry from both sides, so we have to deliver on what was promised in Scotland," Sefcovic said.
The trade ministers also plan to review industrial overcapacity from China and reforms for the World Trade Organisation, Foressier said.
Source: commonspace.eu with Reuters
