Policy recommendations

  • The European Union should allow ACP countries to maintain their sovereignty and policy space in relation to the appropriate use of their own natural resources. They should be able to use investment regulations, tariff barriers and export restrictions to promote equitable, local and sustainable economic development.
  • The European Commission through its development policy should stimulate resource-rich developing countries to implement their own industrial policies, to protect their infant industries by using legitimate barriers to trade, and by introducing environmental measures. This should allow resource-rich developing countries to move up the value chain, so that the added value to (semi) processed products will remain in the country of origin and would thus stimulate economic development.
  • Within its development budget the EU should allocate sufficient resources to the building of energy and environmental infrastructure to enable developing countries to stimulate economic development.
  • The EU should use its political and economic power to set clear rules in relation to the extraction of raw materials. Like suggested in the February 2011 RMI update an EU code of conduct for EU companies operating in third countries should be developed and measures should be taken to enforce such a code of conduct.
  • In order to provide for more transparency in the supply chain and to minimize the role of European companies in fuelling conflicts over resources, the EU should implement Country by Country reporting, following the US example of the Dodd Frank Act.
  • Within the EPA negotiations the EU should be more flexible as suggested in the RMI update and make sure developing countries can demonstrate the use of export taxes as a policy tool and therefore keep using them.
  • In all policy initiatives and actions elaborated on the basis of the strategy laid down in the Raw Materials Initiative that affect developing countries, DG Development should be closely involved, and ACP partner countries and civil society organisations should be consulted.

 

 

Case: Raw Materials Initiative

17-03-2011 ALDE group questions Commission on Rare Earth Elements

In the last weeks and months, many questions have been asked to the Council and the Commission on Rare Earth Elements (REE). Most of the questions were however about, how Europe will safeguard its position next to China. As currently, China controls 97% of the world production of REE imports, the EU is dependent on China, which announced significant export restrictions as a reply to the global demand for REE.

Luckily a number of MEPs from the ALDE Group; Lena Ek, Vladko Todorov Panayotov, Fiona Hall, Marielle De Sarnez, Niccolò Rinaldi, Marietje Schaake and Michael Theurer, asked the Commission on how it plans to ensure that extraction of REE in developing countries is undertaken in a fully transparent manner and with consultation of local communities.

The extraction of Raw Materials in developing countries is often very problematic, in relation to social and environmental standards and conflicts. Besides developing countries should be able to benefit from their raw materials themselves. These issues need to be taken into account by the EU in their raw materials policies. In order to make these policies coherent to the EUs development objectives.

Fair Politics has monitored these members of the ALDE Group as Fair Politicians and will therefore receive a point in our monitoring system.

Monitor fair: ALDE

Parliamentary questions
O-000043/2011/rev.1
28 February 2011
ORAL QUESTION, by Lena Ek, Vladko Todorov Panayotov, Fiona Hall, Marielle De Sarnez, Niccolò Rinaldi, Marietje Schaake, Michael Theurer, on behalf of the ALDE Group

Subject: Securing Europe's supply of rare earth elements
Rare earth elements (REE) are critical to hundreds of high-tech applications, and key to the development of green technologies such as wind-powered turbines and hybrid vehicles. EU industry currently depends totally on REE imports from China, which controls 97% of world production. Furthermore, while global demand for REE rises, China has already announced significant export restrictions.
It is estimated that already in 2014 a global production shortfall of 40 000 tonnes of REE will exist. What possible short-term measures is the Commission proposing to take regarding REE, in accordance with the pillars set out in the European Raw Materials Initiative (RMI)?
How does the Commission intend to deal with the sensitive REE issue in its regular dialogue with China and within the trade and economic cooperation agreement and the ongoing negotiations for the EU China partnership and cooperation agreement? What is the state of play within the WTO? What steps has the EC taken, along with its partners, to establish alternative sources of REE and minimise the supply risk for European industry?
Has the Commission considered securing long-term trade agreements with other countries and regional organisations which produce REE, such as Latin-American countries, Australia and Canada?
Given that REE are necessary not only for high-tech appliances and green technologies but also for critical medical and defence applications, is the Commission considering the possibility of setting up a European stockpiling scheme for these materials (following similar moves by the US, Japan and Korea) in order to enable adequate REE supply and price stability? What are the prospects for REE recycling in the EU? Will REE substitution play an important role in the next research FP?
How does the Commission plan to encourage EU REE companies to redevelop and exploit other sources within the EU and in Greenland? What action does the Commission plan to take to ensure that extraction of rare earths in developing countries is undertaken in a fully transparent manner and with due consultation of local communities?