From Trade Liberalism to Resource Sovereignty: Paradigm Change in Global Raw Materials Governance

Global raw materials governance is experiencing a paradigm shift. Long rooted in liberal trade norms and multilateral enforcement, the liberal trading regime faces mounting challenges from sovereignty-based strategies, legal defiance, and normative fragmentation. Drawing on Peter Hall’s typology of policy change and Finnemore and Sikkink’s model of norm emergence and internalization, this article frames the shift as a multi-level process: moving from first-order policy adjustments to second-order institutional strain, and ultimately to third-order redefinitions of trade’s purpose and legitimacy. The article empirically examines three sites of contestation: China’s rare earth export restrictions, Indonesia’s rejection of WTO rulings on nickel (DS592), and the European Union’s expanding use of non-binding Memoranda of Understanding (MoU) in its external raw materials strategy. While MoUs do not replace Economic Partnership Agreements (EPAs), their normative focus on sustainability, value addition, local processing, and negotiated sovereignty signals a strategic realignment aimed at de-risking from China. This article uses process tracing and document analysis to show how contested norms around development, sovereignty, and fair trade reshape global trade instruments. It contributes to trade law and international political economy by highlighting how soft law and strategic diplomacy drive the emergence of a post-liberal resource governance regime.