By Admin 
An important agreement was reached between America and Australia on Monday (20 October). US President Donald Trump and Australian Prime Minister Anthony Albanese signed this agreement. This deal is related to rare earth minerals and critical minerals, which are necessary in making electric vehicles, jet engines and defense equipment.
Trump told in the White House that this agreement was completed after four-five months of negotiations. The two leaders also discussed trade, defense equipment and submarine projects. Albanese said the total value of this agreement was 8.5 billion dollars (about Rs 71,000 crore). Under this deal, both the countries will invest in mining and processing projects in the next six months. Also, a minimum price floor has been fixed for critical minerals, which was a demand of western companies for a long time.
America is increasing trust in Australia
China has the world’s largest rare earth reserves, but Australia is also an important player in this field. America is now increasing its trust in its QUAD partner Australia so that its dependence on China is reduced.
This agreement also has geopolitical importance. Western countries now want to reduce dependence on China. In recent months, China has tightened rare earth export controls, increasing pressure on the global supply chain. America and its allies consider it a threat to global industries.
What is the challenge for India?
This news is special for India. America is taking minerals from its QUAD ally Australia, while India is still dependent on China in many areas. The question arises that if India also deals with China in its own interest, then why should it be considered a ‘strategic risk’, whereas America is doing the same thing. This deal will strengthen US-Australia economic and defense ties and could change the balance of power in the Indo-Pacific region. The challenge for India is whether it should go along with global politics or take steps in the interest of its resources.
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