AGREEMENT BETWEEN THE GOVERNMENT OF JAPANAND THE GOVERNMENT OF THE UNITED STATES OF AMERICAON STRENGTHENING CRITICAL MINERALS SUPPLY CHAINSThe Government of Japan and the Government of the United States of America(collectively, “the Parties”):
Recalling the formation of the Japan - U.S. Partnership on Trade on November
17, 2021;
Reaffirming the Parties’ commitment to cooperation in the Minerals Security
Partnership established on June 14, 2022, including with respect tostrengthening and diversifying critical minerals supply chains for the clean
energy transition;
Recognizing the Memorandum of Cooperation on the Japan - U.S. Task Forceon the Promotion of Human Rights and International Labor Standards in Supply
Chains, done at Washington D.C., on January 6, 2023;
Recognizing the importance of critical minerals to electric vehicle battery
supply chains;
Seeking to ensure the free trade of such critical minerals;
Seeking to strengthen supply chains between Japan and the United States ofAmerica;
Recognizing that each Party has obligations to effectively enforce its
environmental and labor laws, and to ensure that its environmental and laborlaws and policies provide for, and encourage, high levels of environmental andlabor protection;
Underscoring that environmentally sound and efficient recycling of criticalminerals is indispensable to ensuring sustainable supply chains of criticalminerals;
Emphasizing the value of sourcing critical minerals in a sustainable andequitable manner; andNoting the common objective of further strengthening commercial ties between
Japan and the United States of America,
In view of the Trade Agreement between Japan and the United States ofAmerica, done at Washington, D.C., on October 7, 2019,
HAVE AGREED as follows:Article 1: Objective of the Agreement
The objective of this Agreement is to strengthen and diversify critical minerals
supply chains and promote the adoption of electric vehicle battery technologies byformalizing the shared commitment of the Parties to facilitate trade, promote faircompetition and market-oriented conditions for trade in critical minerals, ensure robustlabor and environmental standards, and cooperate in efforts to ensure secure,sustainable, and equitable critical minerals supply chains.
Article 2: Definitions
For purposes of this Agreement:
critical minerals means the minerals listed in the Annex to this Agreement, subject toamendments as the Parties may decide;
critical minerals lifecycle means the extraction of critical minerals, their processing,recycling, and end-of-life disposal;days means calendar days, including weekends and holidays;
environmental laws means statutes and regulations of a Party, or any provision thereof,
including any that implement the Party’s obligations under a multilateral environmental
agreement, the primary purpose of which is the protection of the environment, or theprevention of a danger to human life or health, through:(a)the prevention, abatement, or control of the release, discharge, or
emission of pollutants or environmental contaminants;(b)

the control of environmentally hazardous or toxic chemicals, substances,materials, or wastes, and the dissemination of information related
thereto; or(c)the protection or conservation of wild flora or fauna,1 including
endangered species, their habitat, and specially protected natural areas,2but does not include statutes and regulations, or any provision thereof, directly related toworker safety or health, nor any statutes and regulations, or any provision thereof, theprimary purpose of which is managing the subsistence or aboriginal harvesting of
natural resources;

1

The Parties recognize that “protection or conservation” may include the protection or conservation of
biological diversity.

2

For purposes of this Agreement, the term “specially protected natural areas” means those areas asdefined by the Party in its law.

extraction means the activities performed to extract minerals or natural resources fromthe ground, including by operating equipment to extract minerals or natural resourcesfrom mines and wells, or to extract minerals or natural resources from the waste orresidue of prior extraction. Extraction concludes when activities are performed toconvert raw mined or harvested products or raw well effluent to substances that can bereadily transported or stored for direct use in processing critical minerals;
GATT 1994 means the General Agreement on Tariffs and Trade 1994, set out in Annex
1A to the Marrakesh Agreement Establishing the World Trade Organization, done at
Marrakesh on April 15, 1994 (“WTO Agreement”);
labor rights means:(a)rights as stated in the International Labor Organization Declaration on
Fundamental Principles and Rights at Work, as adopted in 1998 andamended in 2022, covering the following internationally recognizedlabor rights: freedom of association3 and the effective recognition of
the right to collective bargaining; the elimination of all forms of forced
or compulsory labor; the effective abolition of child labor, a prohibitionon the worst forms of child labor; the elimination of discrimination in
respect of employment and occupation; and a safe and healthy working
environment;(b)acceptable conditions of work with respect to minimum wages4 andhours of work; and(c)the right to be free from discrimination or retaliation for participating ininvestigations or other proceedings related to the enforcement of laborlaws or otherwise reporting in good faith to a competent authority facts
concerning possible violations of labor laws5;

labor laws means statutes and regulations, or provisions of statutes and regulations, thatare directly related to labor rights;
processing means the refining of substances or materials that have been extracted,
including the treating, baking, and coating processes used to convert extracted
substances and materials into materials that can be used for manufacturing and otherpurposes in critical minerals supply chains;

3

The Parties recognize the importance of the right to strike in the context of the right to freedom of
association.

4

For greater certainty, a Party’s labor laws regarding “acceptable conditions of work with respect tominimum wages” include requirements under that Party’s labor laws to provide wage-related benefit
payments to, or on behalf of, workers, such as those for profit-sharing, bonuses, retirement, andhealthcare.

5

For greater certainty, such treatment includes conduct that intimidate, threaten, restrain, coerce,
blacklist, discharge, or discriminate against any person for their participation.

recycling means the series of activities during which recyclable materials containing
critical minerals are transformed into specification-grade commodities and consumed inlieu of virgin materials to create materials that can be used for manufacturing and otherpurposes in critical minerals supply chains;statutes and regulations means:(a)for Japan, a Law of the Diet, a Cabinet Order, or a Ministerial Ordinanceand other Orders established pursuant to a Law of the Diet, that is
enforceable by action of the central level of government; and(b)for the United States of America, an Act of Congress or regulation
promulgated pursuant to an Act of Congress that is enforceable by actionof the central level of government and includes the Constitution of theUnited States of America.

Article 3: Facilitating Trade in Critical Minerals
1.
Each Party affirms its obligation not to impose prohibitions or restrictions onimports of critical minerals from the territory of the other Party or on exports of criticalminerals to the territory of the other Party other than duties, taxes, or other charges, inaccordance with Article XI:1 of the GATT 1994.
2.
Each Party shall maintain its current practice not to impose export duties on
critical minerals exported to the territory of the other Party.
3.
Each Party affirms its obligation to accord national treatment to the criticalminerals of the other Party in accordance with Article III of the GATT 1994, including
its interpretative notes.
4.
In order to promote fair competition and market-oriented conditions for trade in
critical minerals, the Parties shall confer on potential effective and appropriate domestic
measures to address non-market policies and practices of non-Parties affecting trade in
critical minerals and on issues relating to global critical minerals supply chains,
including extraction and processing capacity and trends, price differences between
markets, domestic industry conditions, and trade flows. The Parties may share
publicly available data with respect to trade in critical minerals, including from othermarkets.
5.
The Parties shall confer on best practices regarding review of investments within
their territories in the critical minerals sector by foreign entities for purposes of assistinga determination by the Party of the effect of such investments on its national security.
When appropriate and consistent with their applicable regulatory frameworks, theParties may notify each other of such investments.
6.
In the event of a supply chain disruption, to the extent possible, the Parties shallconfer to support each Party’s efforts to address the disruption.

Article 4: Facilitating Sustainable Supply Chains for Critical Minerals
1.
The Parties affirm their participation in the development of international
standards and confirm their intention to continue their cooperation in ongoing work
including on international standards for critical minerals labeling and recycling with aview to supporting sustainable supply chains.
2.
Each Party confirms its intention to ensure that its environmental laws andpolicies provide for, and encourage, high levels of environmental protection withrespect to critical minerals and confirms its intention to continue to improve its
respective levels of environmental protection with respect to the critical minerals
lifecycle and trade in critical minerals.
3.
The Parties recognize the importance of traceability and transparency throughout
critical minerals supply chains to ensure responsible sourcing of critical minerals.
4.
Each Party confirms its intention to establish and maintain appropriate
procedures for assessing the environmental impacts of proposed projects that involve
critical minerals at any stage in the critical minerals lifecycle, that are subject to an
action by that Party’s central level of government and that may cause significant effects
on the environment, with a view to avoiding, minimizing, or mitigating adverse effects.
5.
The Parties recognize the important role that multilateral environmental
agreements can play in protecting the environment, including related to environmental
impacts from the critical minerals lifecycle. Each Party affirms its commitment toimplement the multilateral environmental agreements to which it is a party.
6.
The Parties also recognize the importance of taking into consideration relevant
environmental best practices and international guidelines on environmental
sustainability that are related to the critical minerals lifecycle, as appropriate, whendeveloping national policies and procedures on critical minerals.
7.
The Parties, recognizing that more resource efficient economies improve
resource security and can reduce potential adverse climate and environmental impactsof certain materials, goods, and production processes, including those related to criticalminerals, shall endeavor to take measures that promote more resource efficient andcircular economy approaches to reduce the demand for, and environmental impact of,virgin material extraction and related processes, including by: extending productlifetimes, increasing the proportion of materials and products that are reused andrecycled, and reducing waste throughout the relevant supply chains.
8.
Each Party confirms its intention to promote public awareness of its
environmental laws and policies regarding critical minerals, including enforcement andcompliance procedures, by ensuring that appropriate information is available to the
public.

Article 5: Building Equitable Supply Chains for Critical Minerals
1.
Each Party confirms its intention to adopt and maintain labor rights in its statutes
and regulations, and practices thereunder.
2.
Each Party confirms its intention not to waive or otherwise derogate from, oroffer to waive or otherwise derogate from, their respective statutes and regulations
related to a right stated in the International Labor Organization Declaration on
Fundamental Principles and Rights at Work, as adopted in 1998 and amended in 2022 if
the waiver or derogation would be inconsistent with such right; or related to any laborright if the waiver or derogation would weaken or reduce adherence to any such right ina special trade or customs area, such as an export processing zone or foreign trade zone,
in the Party’s territory.
3.

Each Party confirms its intention to effectively enforce its labor laws.

4.
To the extent a Party provides social protection benefits under its law,6 that
Party shall endeavor to promote the awareness of such benefits and ensure eligible
populations, as defined by its law, are able to effectively access these protections.
5.
Each Party confirms its intention to investigate and address violence or threatsof violence, including gender-based violence, against workers or workers’ organizations
that is related to exercising or attempting to exercise labor rights.
6.
Each Party confirms its intention to ensure that migrant workers are protectedunder its labor laws, whether they are nationals or non-nationals under the Party’s laws.
7.
Each Party confirms its intention to maintain policies that it considers
appropriate to protect workers against employment discrimination, including on thebasis of sex (including with regard to sexual harassment), pregnancy, sexual orientation,
gender identity, and caregiving responsibilities; provide job-protected leave for birth or
adoption of a child and care of family members; and protect against wage
discrimination.
8.
Each Party confirms its intention to discourage, through initiatives it considers
appropriate, the importation of goods produced in whole or in part by forced orcompulsory labor, including forced or compulsory child labor. In this regard, eachParty may consider opportunities to discourage the importation into its territory of
goods containing critical minerals extracted or processed in whole or in part by forced
or compulsory labor, including forced or compulsory child labor. To assist in theimplementation of this paragraph, the Parties confirm their intention to cooperate in
identifying and discouraging the importation and transshipment of such goods. The
Parties recognize the importance of remediating situations of forced labor, and of
seeking to ensure that victims of forced labor involved in the production of goods
receive appropriate remediation.
6

For greater certainty, “social protection benefits” include medical care benefits, sickness benefits,
unemployment benefits, old age-related benefits, employment injury benefits, family benefits, parental
benefits, invalidity benefits, and survivors’ benefits.

9.
The Parties recognize the importance of cooperation as a mechanism foreffective implementation of this Article and to advance common goals regarding laborrights in critical minerals extraction and processing. Accordingly, the Parties shall:(a)coordinate engagement, information-sharing, and enforcement actions
related to this Article, to the extent permissible under the laws of eachParty;(b)identify opportunities to build their capacity, and that of other countries
or regions whose producers supply their markets, to implement highlabor standards, including those related to responsible business practices
in the critical minerals lifecycle;(c)to the extent permissible under the laws of each Party, share information
regarding, and promote remediation of, violations of labor rights atentities connected to critical minerals supply chains;(d)encourage approaches enabling producers in their respective jurisdictions
to carry out risk-based labor rights due diligence, including in criticalminerals supply chains;(e)promote employer neutrality in union organizing and operations; and(f)share information and research, as appropriate, to highlight best practices
in combatting forced labor and promoting other labor rights, andmeasuring the impact of due diligence on those rights, including during
the critical minerals lifecycle.

The Parties shall commence the activities provided for in this paragraph within
one year of entry into force of this Agreement.
10.
Each Party confirms its intention to establish or maintain, and consult with, anational labor consultative or advisory body or similar mechanism enabling members of
its public, including representatives of labor and business organizations to provide
views on matters regarding this Agreement.
Article 6: Inclusive Trade Policy
The Parties recognize the importance of consulting on trade policy related to
critical minerals supply chains with a wide range of stakeholders.

Article 7: Cooperation on Critical Minerals
The Parties shall seek to cooperate bilaterally and in plurilateral fora, as
appropriate, regarding efforts to ensure secure, sustainable, and equitable criticalminerals supply chains. Both Parties recognize the importance of continued bilateraland plurilateral efforts to strengthen sustainable and equitable supply chains throughcommon standards among allies and partners. In this respect, each Party shallendeavor to refrain from adopting or maintaining any measure that would nullify or
impair the objective of this Agreement or otherwise impede the cooperation undertaken
pursuant to this Article.
Article 8: Security Exception
Nothing in this Agreement shall be construed to:(a)require a Party to furnish or allow access to any information thedisclosure of which it determines to be contrary to its essential security
interests; or(b)preclude a Party from applying any measure that it considers necessary
for the fulfilment of its obligations with respect to the maintenance orrestoration of international peace or security or for the protection of its
own essential security interests.

Article 9: Implementation
This Agreement shall be implemented by the Parties in accordance with, and to
the extent permitted by, their laws and regulations in force, and within the available
resources of each Party.
Article 10: International Obligations and Domestic Legal Framework1.
Nothing in this Agreement modifies any international obligation of either Party,
including any obligation under the WTO Agreement.
2.
Nothing in this Agreement shall be construed to affect the authorities of therelevant state institutions of Japan or the United States of America.
Article 11:

Consultations

No later than 15 days after a request by either Party, the Parties shall enter into
consultations regarding any matter that might affect the operation or interpretation ofthis Agreement, with a view to arriving at a mutually satisfactory resolution of thematter within 60 days of the request.

Article 12: Review of the Agreement
At least once within two years of the Agreement entering into force, and every
two years thereafter, each Party shall review its respective capacities to extract andprocess critical minerals to decide whether it is appropriate to terminate or amend theAgreement, including the list of minerals in the Annex.
Article 13: Amendments
This Agreement may be amended by written agreement between the Parties.
Article 14: Entry into ForceThis Agreement shall enter into force upon signature.
Article 15: Termination
Either Party may terminate this Agreement at any time by providing written
notice of termination to the other Party. A Party that intends to terminate thisAgreement shall provide at least 90 days’ written notice to the other Party. The
termination shall take effect four months after the date on which a Party has provided
that written notice to the other Party, or on such other date as the Parties may decide.

IN WITNESS WHEREOF, the undersigned, being duly authorized by theirrespective Governments, have signed this Agreement in duplicate, in the Japanese andEnglish languages, both texts being equally authentic.
DONE at Washington, D.C., this 28th day of March, 2023.

FOR THE GOVERNMENT
OF JAPAN

FOR THE GOVERNMENTOF THE UNITED STATESOF AMERICAANNEX

The term “critical minerals” means any of the following:(a)cobalt;(b)graphite;(c)lithium;(d)manganese; and(e)nickel.