What does Preamble of S 429 do?

This bill, formally titled 'A BILL To enhance the economic and national security of the United States by securing a reliable supply of critical minerals and rare earth elements through trade agreements and strategic partnerships,' aims to secure a reliable supply of critical minerals and rare earth elements. The bill intends to achieve this goal through trade agreements and strategic partnerships.

What does SHORT TITLE. of S 429 do?

This bill is formally titled the ``Securing Trade and Resources for Advanced Technology, Economic Growth, and International Commerce in Minerals Act'' or the ``STRATEGIC Minerals Act''.

What does DEFINITIONS. of S 429 do?

This section defines terms used throughout the Act. “Appropriate congressional committees” are defined as the Senate Committee on Finance and the House of Representatives Committee on Ways and Means. “Country” includes foreign countries, territories, and possessions, as well as the Trust Territory of the Pacific Islands. A “covered free trade agreement” must focus on critical minerals and rare earth elements, reduce trade barriers, prevent benefits to foreign entities of concern, and be approved by Congress. “Critical mineral” is defined by reference to section 7002(a) of the Energy Act of 2020. “Foreign entity of concern” is defined by reference to section 40207 of the Infrastructure Investment and Jobs Act. “Rare earth element” is defined as a specific list of elements. “Trade Representative” refers to the United States Trade Representative.

What does BRIEFING ON COVERED FREE TRADE AGREEMENTS. of S 429 do?

This section requires the Trade Representative to provide a classified briefing to congressional committees within 120 days of the Act's enactment. The briefing must address the feasibility and advisability of pursuing and adopting covered free trade agreements. The briefing should analyze appropriate agreement types (bilateral, plurilateral, or multilateral) based on economic impact, strategic partnerships, negotiation feasibility, and national security. Recommendations are required for agreement types needed to secure critical minerals and rare earth elements supply chains. The briefing must assess potential challenges and propose solutions, including legal, regulatory, and geopolitical considerations.

What does NEGOTIATING AND TRADE AGREEMENTS AUTHORITY FOR COVERED FREE of S 429 do?

This section establishes authority for the President to negotiate, enter into, and enforce covered free trade agreements to enhance the economic well-being, national security, and economic competitiveness of the United States. The President may not initiate negotiations until the Trade Representative provides a briefing to congressional committees. Negotiating objectives include strengthening supply chains of critical minerals and rare earth elements, reducing trade barriers related to these minerals, and promoting policies that advance sustainable practices. The agreement must provide trade benefits exclusively to countries that are parties to it. The President may not negotiate with nonmarket economy countries unless a joint resolution is enacted approving accession. The authority to negotiate and enter into covered free trade agreements terminates on July 1, 2035, but the authority to enforce such agreements continues. Consultation and notification requirements are established for Congress before initiating negotiations or issuing proclamations.

What does INCLUSION OF BUSINESSES OF PARTIES TO COVERED FREE TRADE of S 429 do?

This section amends Section 702(7)(B) of the Defense Production Act of 1950. It expands the definition of 'domestic source' to include territories of parties to covered free trade agreements. Businesses in these territories can be treated as a domestic source only for mineral activities related to minerals where the U.S. and Canada have a deficient supply. To qualify, minerals must be processed by entities owned by U.S. entities with limited equity ownership by foreign entities of concern. Businesses cannot sell minerals or revenues to entities in the People’s Republic of China or entities controlled by foreign entities of concern. The Secretary of Defense, in consultation with the Secretaries of the Interior and Energy, determines mineral supply deficiency, considering factors like production levels, demand, and foreign dependence. Non-compliance can result in penalties including repayment of funds, disqualification from contracts, civil penalties, and potential criminal prosecution.

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STRATEGIC Minerals Act — S. 429

Last updated: 2/5/2025 · Introduced: 2/5/2025

Author: Todd Young (R-IN)

TL;DR (AI)

This bill aims to secure a reliable supply of critical minerals and rare earth elements for the United States through trade agreements and strategic partnerships.
The bill authorizes the President to negotiate covered free trade agreements focused on critical minerals, with restrictions on negotiating with certain nonmarket economy countries and limitations on trade benefits.
It expands the definition of 'domestic source' under the Defense Production Act to include territories of countries with covered free trade agreements, provided certain conditions regarding ownership and sales are met to ensure minerals are not sold to entities of concern.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 4 more.

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