“From day one, my Administration has fought tirelessly to achieve a level playing field for the American worker. This historic agreement will begin to rebalance our vital trade partnership with China and benefit both of our countries,” said Trump in an official statement.
Under the terms of the deal, the US cut tariffs on US$120 billion in Chinese goods to 7.5 percent from earlier at 15 percent. While, China agreed to increase purchases in the US by $200 billion over the next two years in manufactured goods, agriculture, energy and services.
With the deal, He continued, US is estimating will secures some $50 billion in purchases of American products. He claimed, for the first time in any trade agreement, China agreed to end its practice of forcing foreign companies to transfer their technology to Chinese companies in order to gain market access.
China also will address numerous longstanding intellectual property concerns in the areas of trade secrets, trademarks, enforcement against pirated and counterfeit goods, and more. The second biggest economy in the world also agreed to strong commitments on currency practices regarding currency devaluations and exchange rates.
Trump asserted, the agreement addresses a wide range of trade and investment barriers that have prevented American financial services companies from being able to compete in China. In addition, the deal addresses structural barriers that have unfairly limited United States food and agricultural exports, includes significant commitments by China on accepting US agricultural biotechnology products.
As a part of the new agreement, China has pledged to increase imports of American goods and services by at least $200 billion over the next two years, he adds. The trajectory is expected to continue even after 2021. China will be making purchases of United States manufactured goods, agriculture, energy, and services under this deal.
Commenting on the Phase Two of the trade deal, Vice President Mike Pence said the discussions had already begun, hours after Washington and Beijing signed an initial trade pact. In interview with Fox News he stated, “We’ve already begun discussions on a Phase 2 deal.” withotu giving further details.
The US major stock indexes cheered the conclusion of the phase one US - China trade deal. The Dow jumped 0.31 percent, rose 0.19 percent, and the added 0.08 percent.
by Linda Silaen, Email: linda.silaen@theinsiderstories.com
