Daijiworld Media Network - Washington

Washington, Aug 18: More than 50 House Democrats have raised concerns over the Trump administration’s critical minerals agreements, warning that the deals could benefit politically connected families, expose American taxpayers to potentially significant losses and weaken congressional oversight.

In a letter to four senior administration officials, 54 lawmakers questioned agreements covering the mining, processing and trade of critical minerals. They cited concerns over transparency, labour and human rights, environmental safeguards and the use of public funds.

The letter was addressed to US Trade Representative Jamieson Greer, Secretary of State Marco Rubio, Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent.

The lawmakers pointed to a US-backed critical minerals agreement in Kazakhstan and cited recent reporting by The New York Times alleging that companies linked to the families of President Donald Trump and Lutnick could benefit from the arrangement.

“Absent strong transparency and accountability measures, these investments and loan guarantees raise risks of conflicts of interest, self-dealing, preferential treatment, and weakened oversight,” the lawmakers wrote.

They said the agreements could expose US taxpayers to billions of dollars in direct loans and loan guarantees through the Development Finance Corporation and Export-Import Bank. They also questioned proposed federal equity investments in mining and processing companies.

The Democrats argued that the structure could leave taxpayers bearing losses if projects fail while private companies retain the gains if ventures succeed.

The initiative was led by House Natural Resources Committee ranking member Jared Huffman, Ways and Means Trade Subcommittee ranking member Linda Sánchez and Congressman Jonathan Jackson. Indian American lawmakers Ro Khanna and Shri Thanedar were among those who signed the letter.

The lawmakers said they support strengthening US critical mineral supply chains for clean-energy and technology industries and reducing dependence on China. However, they also raised concerns about arrangements involving the Democratic Republic of Congo, Zambia, Malaysia, Argentina, Ecuador, Cambodia and Bangladesh.

They alleged that the State Department had threatened to withhold HIV medicines and other assistance to pressure Zambia into signing a minerals agreement. They also questioned the involvement of a US-backed paramilitary force in guarding mining operations in Congo.

The letter further said critical minerals provisions in trade agreements with Argentina, Ecuador, Cambodia and Bangladesh required those countries to facilitate US mining investment without imposing binding environmental, labour or human rights commitments.

“In light of these concerns, we call for a transparent and accountable negotiation process, alongside a clear commitment to advancing high-road, sustainable critical minerals mining and processing,” the lawmakers wrote.

The Democrats submitted 10 questions to the administration covering human rights, environmental assessments, taxpayer protections, potential conflicts of interest and proposed price floors.

They also warned that price-support mechanisms could create antitrust concerns and potentially benefit Chinese state-linked companies.

Critical minerals are vital to electric vehicles, batteries, semiconductors, renewable-energy equipment and advanced defence systems. China currently dominates the processing and refining of several critical minerals, prompting Washington to pursue alternative supply chains through overseas agreements and increased domestic investment.

The dispute also highlights a longstanding tension between Congress and the executive branch over trade authority. While the US Constitution grants Congress power over international commerce, successive administrations have relied on executive agreements to advance trade and supply-chain objectives.

The lawmakers noted that members of both parties had previously criticised the Biden administration’s critical minerals agreement with Japan for bypassing Congress.