Britain to join trans-Pacific trade pact

Britain on Sunday formally signed the treaty to join a major trans-Pacific trade pact, becoming the first country to take part since its inception in 2018 and opening the way for members to consider other applications including from China and Taiwan.

The signing was part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) commission meeting being held in New Zealand.

Ministers from member countries will meet later on Sunday to discuss a range of topics, including how to move forward with new applications and a review of the agreement itself.

Britain's Business and Trade Secretary, Kemi Badenoch said at the signing that her country was delighted to become the first new member of the CPTPP.

"This is a modern and ambitious agreement and our membership in this exciting, brilliant and forward looking bloc is proof that the UK's doors are open for business," Badenoch said.

The British government still needs to ratify the agreement.

The CPTPP is a landmark trade pact agreed in 2018 between 11 countries including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Britain will become the 12th member of the pact that cuts trade barriers, as it looks to deepen ties in the Pacific after its exit from the European Union in 2020.

China, Taiwan, Ukraine, Costa Rica, Uruguay and Ecuador have also applied to join the CPTPP.

New Zealand Prime Minister Chris Hipkins said the road to bringing Britain into the agreement had been long and at times challenging, but having major economies inside the partnership would bring the Atlantic to the Indo-Pacific in a way that strengthened the rules-based trading system in the region.

 

 

Mexico urges US and Canada firms to participate in lithium market

Mexican President Andres Manuel Lopez Obrador said his administration will issue a call for US and Canadian companies to participate in the country's incipient lithium market.

Though Mexico does not currently produce lithium, the finance ministry estimated the value of Sonora lithium reserves at US$600 billion.

Mexico does not yet have commercial lithium production; though close to a dozen foreign companies hold contracts to explore potential deposits.

"In all cases there must be associations of the public company with private entities and we do not want lithium to be taken out of Sonora," he said at a regular news conference, referring to government plans to exploit the mineral in the northern Mexican state.

The role of foreign companies will be centered in building infrastructure and state entities will hold the majority stakes in the projects, he added.

Lithium will be used for purposes such as the production of electric car batteries, but only factories installed in Sonora will be able to take advantage of the mineral, Lopez Obrador noted.

The president has urged the private sector to work with the new state miner, saying the size of the investment needed means the government needs partners.

Nonetheless, analysts argue that companies are more likely to focus near-term investments in Chile or Argentina's sprawling salt flats, where industries are more established and policies more market-friendly.

Lopez Obrador nationalized Mexico's lithium deposits in April, hoping to cash in on surging demand for the metal.

 

 

 

Workers at world biggest copper mine in Chile to go on strike

Workers at the world's biggest copper mine of Chile, Escondida, have approved a strike after rejecting the final contract offer proposed by multinational owners BHP. Chile is the world's top producer of copper, making up 28% of global output. 

The mineral accounts for 10-15 percent of the South American country's GDP, with much of it exported to China, the world's biggest consumer.

Following the results of a vote that lasted until Saturday night, the union reported in a statement that there were 2,164 votes in favor of starting the strike against 11 for accepting the employer's offer.

Union and company leaders can initiate a final dialogue with government mediation within five to 10 days.

Escondida workers staged a 44-day strike in 2017, the longest in the history of Chilean mining. The strike caused US$740 million in losses for the company.

The workers are asking for a one-time bonus to recognize their work during the Covid-19 pandemic as well as education benefits for their children.

"We hope that this strong vote is the decisive wake-up call for BHP to initiate substantive talks... if it wants to avoid an extensive conflict, which could be the most costly in the country's union history," the union said.

The Escondida mine is located in the world's driest desert, the Atacama in northern Chile, at more than 3,000 meters (10,000 feet) in altitude.

It is the same area where in 2010 some 33 men were trapped 700 meters underground for 69 days following a cave-in at the Copiapo mine.