Extractives transparency push will slow under Trump

Subject

US resource transparency rules.

Significance

In early February, President Donald Trump signed off on a congressional resolution to overturn anti-corruption rules requiring energy and mining companies to report on payments made to governments to secure resource rights. The administration is also reportedly reviewing a US rule requiring companies using minerals produced in conflict-prone areas to report on the sources of their supplies.

Impacts

• Backsliding by Washington could see Canadian and European extractive firms push for deregulation as well.
• Lack of consensus between Western governments will make it more difficult to achieve buy-in by non-Western countries.
• Loss of reported information will blunt the efforts of pro-accountability groups in opaque and resource-rich countries.
• Legally binding rules are likely to be replaced globally by much weaker systems of industry self-regulation.