Us China Phase 1 Trade Agreement Text
The 96-day agreement includes eight chapters on intellectual property rights, technology transfer, food and agricultural products, financial services, foreign exchange regulation, trade expansion, dispute resolution and final provisions. It addresses the main themes of the USTR`s 2017 section 301 investigation into China. Below is a reading of the main provisions of the agreement. At the signing ceremony at the White House, U.S. President Donald Trump called the agreement “an important step ever made with China toward a future of fair and reciprocal trade with China.” Chinese Vice President Liu He, meanwhile, sent a message from Chinese President Xi Jinping, who hailed the trade deal as a sign that the two countries could settle their differences through dialogue. There appears to be particular attention being paid to imports of agricultural and financial services, both of which constitute their own chapters under the agreement. Agricultural regulations support the expansion of U.S. agricultural exports, including seafood, poultry rice, dairy products, infant formula, horticultural products, feed and additives, pet food and agricultural biotechnology. For their part, Chinese companies, particularly in the technology sector, have been subjected to enough sanctions to have confidence that they can freely access U.S. markets or source uninterrupted supplies to the United States. As a result, the trade war has shaken existing global trade relations to forge new partnerships and refocus on finding alternative markets and suppliers in emerging countries. The agreement aims to ease some U.S.
economic sanctions against China, while Beijing must strengthen the purchase of U.S. agricultural products and other products. For example, Mr. Trump cited beef, pork, poultry, seafood, rice and dairy products. This first trade agreement is seen as the first sign of de-escalation in the long trade war between the United States and China. For more than 18 months, the world`s two largest economies have been fighting crises, followed by back-and-forth negotiations week after week – not to mention a customs war, the introduction of foreign technological restrictions and WTO business. The agreement removes tariffs originally planned for December 15, 2019, which would have had an impact on massive imports from China, such as mobile phones, toys and laptops. He also reaffirmed Mr. Trump`s commitment to the customs union1. September 2019 from 15 percent to 7.5 percent of Chinese products worth $120 billion, including flat-screen TVs, Bluetooth headphones and shoes.
However, other tariffs remain. These include 25% U.S. tariffs on $250 billion worth of Chinese products and China`s retaliatory duties on U.S. products worth $110 billion.