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United States and China Reach Phase One Trade Agreement

December 13, 2019

Editor’s note: CPA is pleased the tariffs are not removed, as news reports suggested. See our full statement here

Washington, DC –  The United States and China have reached an 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 U.S. 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.

[December 13, 2019 | USTR.gov]

“President Trump has focused on concluding a Phase One agreement that achieves meaningful, fully-enforceable structural changes and begins rebalancing the U.S.-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 of Chinese imports, along with 7.5 percent tariffs on approximately $120 billion of Chinese imports.

Read the original press release here.

 


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  • Bruce Bishop
    China will continue to cheat, as they always have. I am already seeing evidence that “Country of Origin” labeling on manufactured goods are being switched to China’s neighbors such as Viet Nam. Also, I’m not sure what technology we have left to transfer since China has been stealing our technology for thirty years.

    I am grateful to Trump for keeping his campaign promise to “Make China Play Fair.” The tariffs are a huge change in our policy toward China. It has become obvious to most thinking people that the globalists were wrong. But, of course, the globalists will pay no penalty for being wrong, It’s the 8 million of us whose careers were destroyed by cheap Chinese imports who continue to suffer.

    It took 30 years for this to happen. Trump will not be able to reverse it in eight years, even with the harshest tariffs. I would suggest that he consider Warren Buffett’s plan for balancing trade by MANDATING a 20% reduction in the Chinese trade deficit each year for five years, until the deficit is zero. This will allow the free market to determine which industries to bring back first and allow time for the rebuilding of our manufacturing infrastructure.
    https://money.cnn.com/magazines/fortune/fortune_archive/2003/11/10/352872/index.htm

    The Buffett article was republished by Fortune in 2016, but drew little attention.

    China has a 25 year plan to control the world, both economically, and militarily. Trump is merely a speed bump on that road. Unless he does something that’s irreversible, our grandkids will all be speaking Mandarin by 2050. Our greedy, incompetent government also has a “long range plan” — it’s to win the next election. It’s the only “long range plan” they have ever had. Tell me I’m wrong. bbishop725@aol.com