Phase I Trade Agreement

December 15, 2020 | Category: Uncategorized

In his January 2020 trade deal with China, President Donald Trump argued that his trade war with China was a success. In its self-proclaimed “historic” agreement, China committed to purchase other U.S. goods and services in 2020 and 2021. Trump even boasted that the deal “could be closer to $300 billion once it`s done.” 3. See appendix to the basic methodological approach. For more information, see Chad P. Bown, Us China Phase One Tracker: China`s Purchases of American Products (September 2020), PIIE Chart, October 26, 2020. It is therefore not surprising that the agreement leaves many deep-rooted issues unresolved. Among them is China`s position on industrial subsidies. While the 15 December tariffs have been suspended, current tariffs are being maintained despite some withdrawals. 7. See US Trade Representative and US Department of Agriculture, Interim Report on the Economic and Trade Agreement between the United States of America and the People`s Republic of China: Agriculture Trade, October 23, 2020.

This report contains data on projected U.S. exports – not actual U.S. exports under the legal text of the trade agreement – based on weekly sales data for certain agricultural products reported to the Department of Agriculture. Tags: Trade, China, Trade War, USA, Phase 1 Agreement The United States and China must return to negotiations on important strategies that are not affected by the first phase agreement. Trump`s trade war has failed to address what really concerns U.S.-China trade relations. It is time for a new approach. The agreement prohibits the United States and China from manipulating exchange rates or interest rates in order to devalue their currencies. China has also agreed to disclose its foreign exchange reserves and quarterly imports of goods and services.

Last year, the Trump administration called China a currency manipulator and argued that China had deliberately repressed the value of its currency to give its exports a competitive advantage; this label was discontinued shortly before the signing of the Phase 1 trade agreement. Today, the world`s two most powerful economies have begun to re-establish a positive and mutually beneficial trading relationship. U.S. tariffs of 25% on Previously imported $250 billion worth of Chinese goods will remain unchanged immediately. These could be withdrawn as part of a phase 2 trade negotiation, U.S. Treasury Secretary Steven Mnuchin said Wednesday. There is no reason why China has not met the Phase 1 targets.

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