US-China inks limited deal to end trade war
December 17, 2019
The Office of the United States Trade Representative has announced that the United States and China have reached a Phase One trade agreement.
The Office of the United States Trade Representative stated that the United States and China have reached a historic and enforceable agreement on a Phase One trade deal that requires structural reforms and other changes to China’s economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, and currency and foreign exchange.
The Phase One agreement also includes a commitment by China that it will make substantial additional purchases of US goods and services in the coming years. Importantly, the agreement establishes a strong dispute resolution system that ensures prompt and effective implementation and enforcement. The United States has agreed to modify its Section 301 tariff actions in a significant way.
“President Trump has focused on concluding a Phase One agreement that achieves meaningful, fully-enforceable structural changes and begins rebalancing the US-China trade relationship. This unprecedented agreement accomplishes those very significant goals and would not have been possible without the President’s strong leadership,” said United States Trade Representative Robert Lighthizer.
“Today’s announcement of a Phase One agreement with China is another significant step forward in advancing President Trump’s economic agenda. Thanks to the President’s leadership, this landmark agreement marks critical progress toward a more balanced trade relationship and a more level playing field for American workers and companies,” said Secretary of the Treasury Steven Mnuchin.
The United States first imposed tariffs on imports from China based on the findings of the Section 301 investigation on China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. The United States will be maintaining 25 percent tariffs on approximately $250 billion (€224 billion) of Chinese imports, along with 7.5 percent tariffs on approximately $120 billion (€107 billion) of Chinese imports.
The fact sheet to the Phase One trade deal can be viewed here.
Categories : Around the Industry
Tags : Tarriffs Trade Deal US-China Trade War
