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Authorizes the U.S. Trade Representative (with relevant Cabinet-level partners) to negotiate and enter into targeted free trade agreements designed to secure supplies of critical minerals and rare earth elements for national security and industrial needs. It requires a classified briefing to designated congressional committees within 120 days explaining which types of agreements would best secure supply chains, sets negotiating objectives and consultation/notice requirements, forbids negotiating with nonmarket economies, and sunsets the new negotiating authority on July 1, 2035. The bill also amends the Defense Production Act definition of “domestic source” so certain businesses in countries that join these covered free trade agreements can be treated as domestic suppliers for Defense Production Act purposes, with rules on qualification, shortage determinations, verification, and compliance.
"Appropriate congressional committees" means the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives.
"Country" means any foreign country or territory, including any overseas dependent territory or possession of a foreign country; and the Trust Territory of the Pacific Islands.
"Covered free trade agreement" means an agreement with one or more countries that (A) exclusively focuses on the critical minerals and rare earth elements sector; (B) reduces barriers to trade among the parties to the agreement; (C) includes enforceable provisions to prevent any foreign entity of concern from gaining any benefit from the agreement; and (D) is approved by Congress.
"Critical mineral" means the term as defined in section 7002(a) of the Energy Act of 2020 (30 U.S.C. 1606(a)).
"Foreign entity of concern" means the term as defined in section 40207 of the Infrastructure Investment and Jobs Act (42 U.S.C. 18741).
Who is affected and how:
U.S. Trade Representative and Executive Branch agencies: USTR will gain a specific, time-limited mandate and new analytic and negotiating responsibilities; State, Defense, Energy, and Interior officers will be drawn into assessments and consultations.
Congressional oversight committees: Must receive a classified analysis within 120 days and will receive 30-day notices before negotiations begin, increasing their role in oversight of trade-policy decisions tied to national security.
Defense industrial base and government contractors: Producers and suppliers who depend on critical minerals and rare earths could see improved access to diversified supply chains and potential DPA support if suppliers are inside covered FTAs; defense contracting and procurement planning may become more flexible.
Manufacturers and industrial operators (processing, refining, and component makers): Firms that rely on these materials (electronics, defense systems, advanced manufacturing) may benefit from new trade relationships and supply-chain arrangements encouraged by the agreements.
Mining, extraction, and processing firms (domestic and foreign): Firms in allied or eligible partner countries may gain privileged commercial and regulatory treatment if their countries join covered FTAs; domestic producers may face new competition or new investment incentives depending on agreement terms.
Foreign governments and firms: Eligible partner countries could gain preferred access or recognition as domestic sources under the DPA if they join covered FTAs; nonmarket-economy countries are explicitly excluded from negotiation.
Regulatory and compliance entities: Agencies administering the DPA and trade-related import/export controls will need to implement new qualification, verification, and compliance procedures to determine when foreign firms count as domestic sources and when shortages exist.
Broader effects and risks:
National security: The measure targets strategic resilience for defense and critical industries by encouraging allied supply and processing capacity; it may strengthen supply chains for munitions, electronics, and other defense-relevant sectors.
Trade and geopolitical implications: Using FTAs as a tool for mineral security ties trade policy to geopolitical strategy; it may prompt allied cooperation but also diplomatic friction with excluded or rival countries.
Administrative and verification burdens: Implementing the new DPA rules and verifying compliance will require agency resources and create procedural complexity for businesses seeking domestic-source treatment.
Economic incentives and market effects: Agreements could spur investment in mining and processing in partner countries, change sourcing patterns for manufacturers, and affect prices and availability of critical minerals and rare earths over time.
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Read twice and referred to the Committee on Finance.
Introduced February 5, 2025 by Todd Young · Last progress February 5, 2025
Read twice and referred to the Committee on Finance.
Introduced in Senate