Australia wants EU investment in critical minerals, but first a free trade agreement

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Australia's Trade Minister Don Farrell has dangled easier access to the country's vast critical minerals sector as part of negotiations over a free trade agreement with the European Union ahead of possible further talks as soon as next week.

, partly over the issue of greater market access for Australian farm products like beef.

"One of the big advantages we've got in this relationship is our access to critical minerals, rare earths, hydrogen and ammonia," Farrell said. Farrell said Europe "understand, just as we have learnt, that putting all your eggs in one basket is a dangerous trade strategy". Australia was an especially attractive place for critical minerals investment from the United States under U.S. Inflation Reduction Act rules because it was one of the few countries to have both mineral deposits and a free trade agreement with the U.S., said Farrell.that potentially paves the way for Australian critical mineral suppliers to benefit from the sticks and carrots the U.S. Inflation Reduction Act is using to encourage domestic production.

 

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