What is the current situation in the EU?

Securing the supply of critical minerals is becoming increasingly important also for the EU. The EU aims to increase extraction and processing of these minerals within the EU and to increase recycling rates, especially for metals used in technologies for the future, such as offshore wind turbines and electric vehicles. Germany basically follows this principle. There are no plans yet for commercial mining of polymetallic nodules to improve reliability of supplies.

What is the current legal situation with regard to deep-sea mining?

Germany is a member of the International Seabed Authority (ISA). The ISA Mining Code contains rules and regulations for all mining activities on the deep seabed, from prospecting and exploration to the actual extraction of minerals. The legal requirements for deep-sea mining, however, are still being discussed and negotiated. The ISA has undertaken to develop Regional Environmental Management Plans (REMPs) for all deep-sea regions in which mining activities are carried out or planned. Before individual projects are approved, these plans should be considered when deciding on the implementation of specific projects. Opinions differ as to whether they ought to be mandatory. The purpose of these plans is to strike a balance between deep-sea mining and environmental protection, to close knowledge gaps and identify collateral impacts, and to coordinate deep-sea mining with other permitted activities such as fishing and the laying of submarine cables. In 2012, a REMP was adopted for the Clarion-Clipperton Zone in the Central Pacific with the world's largest polymetallic nodule field. Others are being prepared. There are also negotiations going on to standardise the preparation and the contents of such REMPs. Germany submitted a REMP application in February 2020.

The ISA has reacted negatively to the Executive Order issued by President Trump, stating that any project that is not carried out in accordance with the recognised international framework or attempts to circumvent international law entails legal, diplomatic, economic, security and financial risks. Furthermore, a 'circumvention' of the ISA supervisory authority would violate international law. According to the ISA, the parties to the UN Convention on the Law of the Sea (UNCLOS) - which include Germany - are obliged not to recognise the acquisition or exercise of any rights to minerals extracted from the deep sea by any state, individual or legal entity that does not comply with Part XI of UNCLOS.

What does that mean for the German raw materials industry?

Even though the US and the EU have similar interests in terms of reliable supplies of critical raw materials, it remains doubtful whether the EU or Germany will join the US initiative to mine for deep-sea polymetallic nodules in the short term. In the event that polymetallic nodules will be imported to Germany for processing in the future, the question will arise as to whether the extraction has been carried out in accordance with UNCLOS and the ISA requirements, which have been transposed into German national law through the German Seabed Mining Act (Meeresbodenbergbaugesetz).

Dr Christian von Wistinghausen
Danah El-Ismail

These tariffs affect all sectors, but one of the most affected in Europe is the automobile sector, particularly in Germany: cars will now be taxed at 25%. The most affected sector in France are aeronautics, with 7.9 billion euros of exports in 2023, pharmaceuticals with 4.1 billion euros in 2023 and alcohol (especially wine) with 3,9 billion.

In addition, differentiated and higher tariff rates will apply on goods from the French overseas territories: Guadeloupe, Mayotte, Guyane and Martinique will be subject to a 10% tax in addition to the 20% levied on the rest of France, while Réunion will be subject to a total tax of 37%. Tariffs of 50% will be imposed on products from Saint-Pierre-et-Miquelon and 10% on those from French Polynesia, as these islands have not been considered part of the EU by Trump.

Commission President Ursula von der Leyen said she was ready to negotiate but was also ready for confrontation if necessary to assert the EU's interests and values. She said that the Commission is working on countermeasures. Several European heads of state are also working on measures to be adopted.

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Prof. Dr Rainer Bierwagen
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