Preferential trade zone proposed for critical minerals
In a move strengthening bilateral ties in a sector of high geopolitical and economic importance, Argentina and the United States signed the Framework Instrument for Strengthening Supply in Mining and Processing of Critical Minerals.
The agreement, signed by Argentine Foreign Minister Pablo Quirno and U.S. Deputy Secretary of State Christopher Landau, was part of the first Ministerial Meeting on Critical Minerals convened by U.S. Secretary of State Marco Rubio. The pact aims not only to diversify global supply chains—reducing dependence on dominant suppliers such as China—but also positions Argentina as a key provider in the energy transition and national security, leveraging its vast reserves of lithium, copper, and other essential minerals. Quirno announced the agreement on his official X account, highlighting its economic impact for Argentina:
"Today I signed, on behalf of Argentina, an agreement on Critical Minerals with the United States: more exports, more investment, and more jobs for our country. Thank you, Christopher Landau (@DeputySecState), for the joint work and commitment to continue strengthening this strategic partnership. TMAP 🇦🇷"
According to Argentina’s Ministry of Foreign Affairs, the country’s mining exports reached $6.04 billion in 2025. The agreement is expected to act as a catalyst to surpass that figure through greater value added in processing and refining.
Technical and strategic aspects of the bilateral agreement
The framework, nonbinding in its entirety but with specific operational commitments, establishes a structure for technical and regulatory cooperation for the sustainable development of critical minerals. These include lithium—where Argentina is part of the Lithium Triangle with Bolivia and Chile, representing roughly 20% of global production—copper, nickel, cobalt, graphite, zinc, gold, silver, rare earth elements (such as neodymium, dysprosium, and terbium), and uranium.
The technical scope covers advanced geological exploration and environmentally high-standard refining, incorporating technologies such as hydrometallurgical processing and in-situ leaching to minimize ecological impact. Key points of the agreement include:
- Supply Chain Diversification and Resilience: Cooperation to identify and mitigate risks across the value chain, including joint vulnerability audits and protocols for geopolitical disruptions. This addresses current concentration, where China controls an estimated 60–80% of global critical minerals processing, according to the U.S. Department of Energy.
- Investment and Financing: Integration with mechanisms such as Argentina’s Large Investment Incentive Regime (RIGI) and the U.S. Development Finance Corporation (DFC). Initial private investment commitments could reach $14 billion in projects such as El Pachón (copper, San Juan, operated by Glencore) and MARA (copper-gold, Catamarca, operated by Rio Tinto), facilitated by fiscal incentives and regulatory stability.
- Job Creation and Local Value Addition: Focus on training skilled workers in downstream processing, with targets to create thousands of jobs in mining regions. Quirno called this a “boost to economic growth,” aligned with projections estimating a 15–20% increase in mining exports by 2027.
- Environmental and Social Governance: Commitments to ESG standards, including water impact assessments in lithium salars and protocols for indigenous communities, consistent with OECD and World Bank guidelines.
- Integration with Multilateral Initiatives: The pact aligns with a 2025 bilateral memorandum of understanding and paves the way for Argentina to join U.S. proposals such as a preferential trade zone for critical minerals, with price floors protected by adjustable tariffs to prevent dumping.
The agreement builds on previous negotiations, including the Reciprocal Trade and Investment Agreement of November 2025, which prioritized market access and harmonization of technical standards in strategic sectors.
Officials’ statements: voices from both sides
Quirno emphasized the strategic alignment during the ministerial meeting:
"This agreement not only strengthens our partnership with the U.S., but ensures clear rules and long-term predictability for investors, unlocking Argentina’s mining potential in a growing global market."
He called the pact a “concrete step toward more exports, investment, and jobs,” reaffirming his commitment to economic openness under President Milei.
From the U.S. side, Rubio praised Argentina’s role in a post-meeting press conference:
"Argentina has the capability, from a natural resources standpoint, to be a key partner in critical minerals – for the world, not just for the United States, in a way that’s good for Argentina."
Rubio highlighted Argentina’s processing expertise and strategic location in the Western Hemisphere, positioning it as a counterweight to the “dominant concentration” controlled by a single actor, implicitly referring to China.
U.S. Vice President J.D. Vance proposed creating a “preferential trade zone” for critical minerals with “reference prices [that] will operate as a floor, maintained through adjustable tariffs” to encourage sustainable production among allies. He said:
"Our goal here … is very simple: diversifying global supply in the critical minerals market while strengthening the partner countries who help all of us in this shared effort."
Although he did not mention Argentina directly, the bilateral context suggests potential inclusion, with initial support from several participants. Landau was recognized by Quirno for his “joint work” in building a strategic partnership.
State Department statements noted Landau’s backing of Project Vault, a U.S. strategic fund with $12 billion in initial financing ($10 billion from the EXIM Bank and $2 billion private) that could incorporate Argentine supplies.
The ministerial meeting brought together delegations from 55 countries plus the European Union to discuss strategies to counter China’s dominance in critical minerals processing, a risk for the energy transition, tech industry, defense, and artificial intelligence.
Key participants included Australia, Japan, South Korea, India, Germany, the U.K., Canada, France, Italy, Mexico, Thailand, Angola, Bolivia, Brazil, the Democratic Republic of Congo (a major cobalt producer), and Guinea.
In addition to the Argentina-U.S. agreement, multilateral commitments were announced, including $10 billion in deals with five countries in October 2025, and proposals for a “Trade and Critical Minerals Agreement” negotiated by the U.S. Trade Representative.
The summit also included discussions on strategic reserves like Project Vault, EXIM Bank financing of $100 billion for allied supply chains, and mechanisms for stable prices to prevent distortions from cheap external supply. A panel on investment highlighted opportunities in Africa and Latin America, emphasizing sustainable production.