Chapter 1: The Current Framework on Lithium Trade in International Law

World Trade Organization (WTO)

The World Trade Organization (WTO) is the primary international organization that
governs trade between countries. The WTO has a number of agreements that are
relevant to lithium trade, including the General Agreement on Tariffs and Trade (GATT),
the Agreement on Trade-Related Investment Measures (TRIMs), and the Agreement on
Technical Barriers to Trade (TBT).

GATT

The GATT is the most important WTO agreement for lithium trade. The GATT prohibits
countries from discriminating against imports from other WTO members. It also requires
countries to bind their tariffs on goods, meaning that they cannot raise their tariffs above
the bound levels without providing compensation to other WTO members.

TRIMs Agreement

The TRIMs Agreement prohibits countries from using investment measures that distort
trade. This includes measures that discriminate against foreign investors or that require
foreign investors to transfer technology to domestic firms. The TRIMs Agreement does
not apply to all investment measures, but it does apply to a number of measures that
are relevant to the lithium industry, such as requirements that foreign investors source
their inputs from domestic suppliers.

TBT Agreement

The TBT Agreement prohibits countries from using technical regulations or standards
that create unnecessary obstacles to trade. This includes regulations and standards that
are not based on scientific evidence or that are more restrictive than necessary. The
TBT Agreement applies to a wide range of products, including lithium.

Comprehensive and Progressive Agreement for Trans-

Pacific Partnership (CPTPP)
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
is a free trade agreement between 11 countries, including Australia, Canada, Chile,
Japan, Mexico, and New Zealand. The CPTPP eliminates tariffs on lithium and other
battery minerals between the member countries. It also provides national treatment for
foreign investors in the lithium industry and prohibits export taxes and other quantitative
restrictions on lithium exports.
 Regional Comprehensive Economic Partnership (RCEP)
The Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement
between 15 countries in the Asia-Pacific region, including Australia, China, India, Japan,
and South Korea. The RCEP eliminates tariffs on lithium and other battery minerals
between the member countries. It also provides national treatment for foreign investors
in the lithium industry and prohibits export taxes and other quantitative restrictions on
lithium exports.

Specific Agreements, Memorandums, Clauses and

Articles with respect to Lithium Trade in International Law
In addition to the WTO, CPTPP, and RCEP agreements, there are a number of other
international agreements that are relevant to lithium trade. These include:

 Memorandum of Understanding (MOU) on Lithium Cooperation between the United

States and Australia (2017): This MOU establishes a framework for cooperation
between the United States and Australia on lithium supply chain development and
research.
 MOU on Lithium Cooperation between the United States and Chile (2017): This MOU
establishes a framework for cooperation between the United States and Chile on lithium
supply chain development and research.
 Agreement on Lithium Cooperation between Argentina, Bolivia, and Chile (2017): This
agreement establishes a joint venture between Argentina, Bolivia, and Chile to develop
their lithium industries.
 MOU on Lithium Cooperation between the United States and Argentina (2019): This
MOU establishes a framework for cooperation between the United States and Argentina
on lithium supply chain development and research.
 MOU on Lithium Cooperation between the United States and Bolivia (2020): This MOU
establishes a framework for cooperation between the United States and Bolivia on
lithium supply chain development and research.

These agreements reflect the growing importance of lithium to the global economy and
the desire of countries to secure access to this critical resource.

Specific Clauses and Articles

The following are some specific clauses and articles from the WTO, CPTPP, RCEP,
and other agreements that are relevant to lithium trade:
 WTO GATT Article I: Most-favored-nation treatment. This article requires WTO
members to provide the same treatment to imports from all other WTO members.
 WTO GATT Article II: Tariff binding. This article requires WTO members to bind their
tariffs on goods, meaning that they cannot raise their tariffs above the bound levels
without providing compensation to other WTO members.
 WTO TRIMs Agreement Article 3: TRIMs that distort trade. This article prohibits
countries from using investment measures that distort trade.
 WTO TBT Agreement Article 2: Objectives. This article sets out the objectives of the
TBT Agreement, which include preventing unnecessary obstacles to trade and
facilitating trade in goods.
 CPTPP Article 2.1: Elimination of tariffs. This article eliminates tariffs on lithium and
other battery minerals between the CPTPP member countries.
 RCEP Article 2.3: Elimination of tariffs. This article eliminates tariffs on lithium and other
battery minerals between the RCEP member countries.
 **MOU
Sources
info

1. www.usasean.org/regions/tpp/about
2. scout.betterworld.sg/sustainable-development-goals/
3. github.com/investorswiki/content

Chapter 2: India's Lithium Discovery and its Implications

for Trade, Investment, and Supply Chain Justice
India's recent discovery of significant lithium reserves has the potential to
have a major impact on the global lithium trade, investment in the lithium
industry, and the pursuit of supply chain justice.

Trade

India's lithium discovery could lead to a significant increase in global lithium

production and exports. India could become a major supplier of lithium to the
global market, which would help to reduce prices and improve access to this
critical resource.

This would be particularly beneficial for countries that are currently dependent
on imports of lithium, such as China, Japan, and South Korea. These
countries have been facing rising lithium prices in recent years, which has
 been a challenge for their domestic lithium-ion battery manufacturing
industries.

India's lithium discovery could also help to diversify the global lithium supply
chain. Currently, the lithium market is dominated by a small number of
countries, including Australia, Chile, and China. This concentration of market
power has led to concerns about price manipulation and other unfair trade
practices.

India's emergence as a major lithium producer could help to reduce the

concentration of market power in the lithium industry and make the supply
chain more resilient and equitable.

Investment

India's lithium discovery is likely to attract significant investment in the

country's lithium and battery manufacturing industries. This investment could
create jobs and boost the Indian economy.

India has already taken steps to attract investment in the lithium industry. In
2022, the Indian government announced a new lithium policy that includes
incentives for lithium exploration and production. The government has also set
a target of achieving 50% domestic manufacturing of lithium-ion batteries by
2030.

A number of foreign companies have already expressed interest in investing

in India's lithium industry. For example, in 2023, the Australian company
Fortescue Metals Group signed a memorandum of understanding with the
Indian government to develop a lithium project in Rajasthan.

Supply Chain Justice

India's lithium discovery could also help to promote supply chain justice in the
lithium industry. The current lithium supply chain is characterized by a number
of challenges, including:

 Environmental damage: Lithium mining can have a significant negative impact

on the environment, including water pollution and land degradation.
 Human rights abuses: Lithium mining has also been linked to human rights
abuses, such as child labor and forced labor.
 Unequal distribution of profits: The profits from the lithium industry are not
evenly distributed. The majority of the profits go to a small number of
multinational companies, while the communities that live near lithium mines
often see little benefit.

India's lithium discovery could help to address some of these challenges. For
example, India could use its lithium reserves to develop a more sustainable
and ethical lithium supply chain. The Indian government could also use its
leverage as a major lithium producer to promote better human rights and labor
standards in the lithium industry.

Conclusion

India's lithium discovery has the potential to have a significant impact on the
global lithium trade, investment in the lithium industry, and the pursuit of
supply chain justice.

India could become a major supplier of lithium to the global market, which
would help to reduce prices and improve access to this critical resource.
India's lithium discovery could also help to diversify the global lithium supply
chain and reduce the concentration of market power.

India's lithium discovery is also likely to attract significant investment in the

country's lithium and battery manufacturing industries. This investment could
create jobs and boost the Indian economy.

Finally, India's lithium discovery could help to promote supply chain justice in
the lithium industry. India could use its lithium reserves to develop a more
sustainable and ethical lithium supply chain. The Indian government could
also use its leverage as a major lithium producer to promote better human
rights and labor standards in the lithium industry.

Specific Actions that India Can Take to Promote Trade, Investment, and
Supply Chain Justice in the Lithium Industry
 The Indian government can take a number of specific actions to promote
trade, investment, and supply chain justice in the lithium industry. These
include:

 Developing a transparent and efficient regulatory framework for the lithium

industry. This would help to attract investment and ensure that lithium mining
and processing is done in a sustainable and responsible manner.
 Investing in research and development to develop new and more sustainable
lithium mining and processing technologies. This would help to reduce the
environmental impact of the lithium industry.
 Promoting the development of a domestic lithium-ion battery manufacturing
industry. This would help to create jobs and boost the Indian economy.
 Working with other lithium-producing countries to develop a more sustainable
and equitable global lithium supply chain. This could be done through
international agreements and other initiatives.

By taking these actions, the Indian government can help to ensure that its
lithium discovery benefits all stakeholders, including the Indian people, the
global economy, and the environment.

Chapter 3: A Prospective Framework on Lithium Trade for India in

International Trade Law

India's recent discovery of significant lithium reserves presents the country

with an opportunity to play a leading role in the global lithium trade. However,
in order to do so, India will need to develop a prospective framework on
lithium trade in international trade law.

This framework should be designed to achieve the following objectives:

 Promote trade in lithium and lithium-ion batteries between India and other
countries.
 Attract investment in India's lithium and battery manufacturing industries.
 Promote supply chain justice in the global lithium industry.
Trade

India can promote trade in lithium and lithium-ion batteries by negotiating

bilateral and multilateral free trade agreements (FTAs). FTAs can eliminate
tariffs and other trade barriers, which can help to increase trade between India
and other countries.

For example, India could negotiate FTAs with other lithium-producing

countries, such as Australia, Chile, and China. This would help to increase
India's access to lithium imports and reduce the cost of lithium-ion batteries for
Indian manufacturers.

India could also negotiate FTAs with countries that are major consumers of
lithium-ion batteries, such as China, Japan, and South Korea. This would help
to increase India's exports of lithium-ion batteries.

Investment

India can attract investment in its lithium and battery manufacturing industries
by offering tax breaks and other incentives to foreign companies. The Indian
government can also establish joint ventures with foreign companies to
develop the country's lithium and battery manufacturing industries.

For example, the Indian government could offer tax breaks to foreign
companies that invest in lithium exploration and production in India. The
government could also establish joint ventures with foreign companies to build
lithium-ion battery manufacturing plants in India.

Supply Chain Justice

India can promote supply chain justice in the global lithium industry by working
with other lithium-producing countries to develop international agreements
and other initiatives. These agreements and initiatives could be aimed at
promoting sustainable and ethical lithium mining and processing practices,
and better human rights and labor standards in the lithium industry.

For example, India could work with other lithium-producing countries to

develop an international agreement on sustainable lithium mining. This
agreement could set standards for lithium mining practices that reduce
environmental damage and promote social responsibility.
 India could also work with other lithium-producing countries to develop an
international agreement on human rights and labor standards in the lithium
industry. This agreement could set standards for working conditions, wages,
and child labor in the lithium industry.

Conclusion

By taking these actions, India can develop a prospective framework on lithium

trade in international trade law that will help it to achieve its trade, investment,
and supply chain justice objectives.

Specific Examples of Bilateral and Multilateral FTAs that India Could

Negotiate to Promote Trade in Lithium and Lithium-Ion Batteries

India could negotiate the following bilateral and multilateral FTAs to promote
trade in lithium and lithium-ion batteries:

 Bilateral FTAs with lithium-producing

countries: Australia, Chile, China, Argentina, Bolivia, and the Democratic
Republic of the Congo.
 Bilateral FTAs with countries that are major consumers of lithium-ion
batteries: China, Japan, South Korea, the United States, and Germany.
 Multilateral FTAs:Comprehensive and Progressive Agreement for Trans-
Pacific Partnership (CPTPP) and Regional Comprehensive Economic
Partnership (RCEP).

Specific Examples of Tax Breaks and Other Incentives that India Could Offer
to Foreign Companies to Attract Investment in Its Lithium and Battery
Manufacturing Industries

India could offer the following tax breaks and other incentives to foreign
companies to attract investment in its lithium and battery manufacturing
industries:

 Tax breaks on income and capital gains from lithium exploration and
production.
 Tax breaks on the import of lithium mining and processing equipment.
 Subsidies for the construction of lithium-ion battery manufacturing plants.
 Access to low-cost land and infrastructure.

Specific Examples of International Agreements and Other Initiatives that India

Could Work with Other Lithium-Producing Countries to Develop to Promote
Supply Chain Justice in the Global Lithium Industry

India could work with other lithium-producing countries to develop the

following international agreements and other initiatives to promote supply
chain justice in the global lithium industry:

 International agreement on sustainable lithium mining. This agreement could

set standards for lithium mining practices that reduce environmental damage
and promote social responsibility.
 International agreement on human rights and labor standards in the lithium
industry. This agreement could set standards for working
conditions, wages, and child labor in the lithium industry.
 Joint research and development projects to develop more sustainable and
ethical lithium mining and processing technologies.
 Information sharing and best practices on sustainable lithium mining and
processing