“Rare Earth MOU” raises concerns – Anutin assures Thai technology development

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On October 26, 2025, the White House website published the framework of a reciprocal trade agreement between the United States and Thailand, as well as a Memorandum of Understanding (MOU) between the U.S. and Thailand concerning cooperation in critical minerals, also known as rare earth elements. The publication of the MOU has raised concerns among various sectors regarding both environmental impacts and Thailand’s position on the global political stage.

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Reciprocal Trade Agreement Framework

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Suphajee Suthumpun, Minister of Commerce, stated that the framework of the reciprocal trade agreement between the U.S. and Thailand is intended to demonstrate mutual commitment between the two countries to promote economic and trade cooperation, create trade balance, and establish a framework for future negotiations on reciprocal trade agreements.

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The content of this framework includes elements that have already been publicly known, elements that have changed, and elements that still require further negotiation for clarification.

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For publicly known elements, the U.S. will maintain tariffs on imports from Thailand at 19%. For changed elements, the percentage of U.S. imports that Thailand will exempt from tariffs has been increased from the original 90% to 99%, covering all industrial products, food products, and agricultural goods from the U.S.

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This announcement is not legally binding, it only serves as a framework for further negotiations. In the coming weeks, the U.S. and Thailand will conduct negotiations and finalize a reciprocal trade agreement, preparing a draft for official signing. Each country will complete its internal procedures before the agreement comes into effect, with completion expected by the end of this year.

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Rare Earth MOU – A Key Factor in Global Politics

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Rare earth elements are critical minerals that are in high demand for electronic gadgets./ Photo: NPR

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The publication of the MOU on cooperation in critical minerals between the U.S. and Thailand has sparked debate among politicians, academics, and the public, due to concerns about environmental impacts from mining and geopolitical issues.

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Rare earth elements are rare minerals that play a crucial role in the production of electronic devices and modern technology, such as smartphones, electric vehicles, and medical equipment. Although they are called “rare,” these minerals are actually found in the Earth’s crust. However, the processes to mine and purify them are difficult and expensive. In Thailand, rare earth deposits are scattered across the western part of the country, from the north to the south, including Chiang Rai, Mae Hong Son, Chiang Mai, Uthai Thani, Kanchanaburi, Prachuap Khiri Khan, Chumphon, Ranong, Phang Nga, and Surat Thani.

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Mining sites located in Kachin State./ Photo:DW

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Environmental concerns stem from experiences in Myanmar, where Chinese mining operations caused limited access to clean water and led to the extinction of local wildlife and fish species.

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Dr. Sonthi Kotchawat, an environmental and health expert, stated that rare earth mining impacts the environment in multiple ways, including contamination of water and soil from chemicals and radioactive mining waste, release of dust and hazardous gases, deforestation and destruction of animal habitats, and excessive water use.

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Concerns over global politics arise from the ongoing trade war between the U.S. and China. One measure taken by China has been to tighten control over rare earth exports, disrupting the U.S. supply chain. Consequently, the U.S. has sought alternative sources from other partner countries, such as a recent agreement with Australia, one of the world’s major producers of critical minerals.

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Thus, some segments of society worry that by signing the Rare Earth MOU with the U.S., Thailand, as a key ally of China, could entangle itself in complex global political dynamics, potentially harming Thailand’s interests in the future.

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Opposition Voices

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Photo: กรรมกรข่าว คุยนอกจอ

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Sirikanya Tansakun, a party-list MP and Deputy Leader of the People’s Party, stated in an interview on the program “Kam Ma Korn kao Nork Jor (News Worker - Off the Record) that the MOU on critical minerals was signed without informing the public. She criticized that the government lacks knowledge in rare earth production and has not clearly announced other relevant measures.

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She further noted that the main concern regarding the MOU is granting excessive privileges to the U.S., including rights to explore and mine. If other investors discover deposits, the U.S. will have the right to participate in the investment.

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“Thailand must consider what benefits it receives. Currently, only technology transfer has been mentioned. It remains to be seen whether we are prepared to receive this transfer. Environmental standards should also be immediately announced, as Thailand has previously mined rare earths and experienced the consequences,” she added.

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Werapong Prapha, Deputy Leader of the Democrat Party, commented on his personal Facebook, stating that China currently dominates the critical minerals market, both domestically and in third-party countries. China has recently used its market leadership to pressure the U.S., threatening stricter export controls as leverage in trade negotiations.

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He added that this is why former U.S. President Trump sought agreements with other countries to ensure sufficient access to critical minerals without depending on China.

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Does Thailand Benefit from the MOU?

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On October 27, 2025, in Kuala Lumpur, Malaysia, at 2:00 PM local time, Prime Minister Anutin Charnvirakul addressed the Rare Earth MOU amid concerns and criticism from multiple sectors.

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He stated that the main purpose of the MOU is to seek cooperation. Thailand should welcome this, as the country already possesses the resources but lacks the knowledge to utilize them effectively.

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He clarified that the MOU is not legally binding. If the agreement violates governance principles, Thai law, or the constitution, or if continuing the project proves unbeneficial, either party can cancel the agreement without the other’s consent, as it is only a memorandum of understanding.

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Prime Minister Anutin added that the MOU is an effort to restore relations between Thailand and the U.S., which could lead to the development of further cooperation in the future.

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Source of material: official media /online news