U.S., China reach phase one trade agreement
The United States and China have reached an agreement on a phase one trade deal, according to statements from both nations.
In a joint statement from United States Trade Representative Robert Lighthizer and Treasury Secretary Steve Mnuchin, the deal requires China to make structural reforms and other changes in the areas of intellectual property, technology transfer, agriculture, financial services, and currency and foreign exchange.
The agreement includes a commitment by China that it will make substantial additional purchases of U.S. goods and services, including agricultural goods, in the coming years.
Lighthizer and Mnuchin emphasized that the agreement establishes a dispute resolution system that ensures prompt and effective implementation and enforcement.
According to the U.S. release, the agriculture chapter “addresses structural barriers to trade and will support a dramatic expansion of U.S. food, agriculture and seafood product exports.”
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 maintain 25 percent tariffs on approximately $250 billion of Chinese imports, along with 7.5 percent tariffs on approximately $120 billion of Chinese imports.