Washington, Aug 18 (IANS) More than 50 House Democrats have raised concerns that the Trump administration’s critical minerals agreements could enrich politically connected families, expose American taxpayers to financial losses and weaken congressional oversight.
In a letter to four senior administration officials, the 54 lawmakers questioned agreements covering mining, processing and trade in critical minerals. They cited concerns over transparency, labour and human rights, environmental protections 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 said companies linked to the families of President Donald Trump and Lutnick could profit from a US-backed critical minerals agreement in Kazakhstan, citing recent reporting by The New York Times.
“Absent strong transparency and accountability measures, these investments and loan guarantees raise risks of conflicts of interest, self-dealing, preferential treatment, and weakened oversight,” they wrote.
The lawmakers said the agreements could commit US taxpayers to billions of dollars in direct loans and loan guarantees from the Development Finance Corporation and Export-Import Bank. They also questioned federal equity investments in mining and processing companies.
“If projects succeed, companies keep the profits; if they fail, taxpayers help absorb losses,” the letter said.
The effort 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 the signatories.
The Democrats said they supported strengthening US mineral supply chains for clean energy and technology industries, and reducing reliance on China. They also criticised arrangements involving the Democratic Republic of Congo, Zambia, Malaysia, Argentina, Ecuador, Cambodia and Bangladesh.
The lawmakers alleged that the State Department had threatened to withhold HIV medicines and other assistance to pressure Zambia into signing a minerals agreement. They also raised concerns about a US-backed paramilitary force guarding mining operations in Congo.
The letter said critical minerals provisions in trade agreements with Argentina, Ecuador, Cambodia and Bangladesh required those countries to facilitate US mining investment without 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.
They submitted 10 questions to the administration. These covered human rights, environmental assessments, taxpayer safeguards, possible conflicts of interest and proposed price floors. The lawmakers warned that price-support mechanisms could create antitrust risks and inadvertently benefit Chinese state-linked companies.
Critical minerals are essential for electric vehicles, batteries, semiconductors, renewable-energy equipment and advanced defence systems. China holds a dominant position in the processing and refining of several such minerals, prompting Washington to seek alternative supply chains through overseas agreements and domestic investment.
Trade authority has long been contested between Congress and the executive branch. The Constitution gives Congress power over international commerce, while successive administrations have used executive agreements to pursue trade and supply-chain objectives. The letter noted that lawmakers from both parties had also criticised the Biden administration’s minerals agreement with Japan for bypassing Congress.
–IANS
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