U.S. and China to sign phase one trade agreement

15 Jan 2020

US China The U.S.-China phase one trade deal signing ceremony has been confirmed to take place at 11.30am local time (1630 GMT).

The ceremony will take place at the White House, says Reuters, and will be attended by U.S. President Trump and Chinese Vice Premier Liu He.

The Phase One deal includes agreements on intellectual property, technology transfers and currency as well as explicit commitments from China to buy at least $200 billion of U.S. exports over the next two years, according to a U.S. Trade Representative document. 

Chinese purchases of U.S. agriculture products - a major factor of the Phase One deal - will increase by $32 billion. 

According to the USTR document, purchases of American exports will continue beyond the two-year period: “China’s increased imports of U.S. goods and services are expected to continue on this same trajectory for several years after 2021 and should contribute significantly to the rebalancing of the U.S.-China trade relationship.”

U.S. stocks hit all-time highs on Tuesday, “until a news service headline said no tariffs would be rolled back until a second phase trade deal is struck between the U.S. and China,” reports CNBC.

Later, one analyst told the American broadcaster: “We’re still stuck with these tariffs which are a drag on growth in trade and manufacturing…These tariffs have now become a roach motel,” meaning they never leave.

Meanwhile Republican economist Stephen Moore, an adviser to the White House, said the confrontation with China “has been a very positive thing for the economy” and should benefit Mr Trump politically for the forthcoming presidential election.

 

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