Read the text of the treaty, feasibility studies, analyses of national interests and more. The pact aims to open up Chinese markets to more U.S. companies, increase agricultural and energy exports, and better protect U.S. technology and trade secrets. China has committed to purchase an additional $200 billion in U.S. goods and services by 2021, and is expected to ease some of its tariffs on U.S. products. To date, the U.S. merchandise trade deficit over the previous year has decreased by 16% from the previous year to $321 billion. The deficit will continue to shrink if Beijing meets its commitments to buy significantly more U.S. imports. WASHINGTON (AP) – The United States and China reached a trade agreement Wednesday that eases tensions between the world`s two largest economies, offers massive export opportunities for U.S. farms and factories, and promises to do more to protect U.S.
trade secrets. “The Phase 1 agreement contains reasonable commitments, but does not meet the government`s original objectives,” said Wendy Cutler, a former U.S. negotiator who is now vice president of the Asia Society Policy Institute. Other Chinese concessions would force Bejing to make major changes to its state-dominated business model, meaning that “the prospects for a timely conclusion are very remote,” she said. In a message to Trump, Chinese President Xi Jinping said the agreement was “beneficial to China, the United States and the world.” Xi also said the agreement shows that both countries can find appropriate and effective solutions to problems “on the basis of equality and mutual respect through dialogue and consultation.” A first pact that cooled tensions in an election year follows months of escalating tariffs and a trade war that seemed never to stop. Trump campaigned for the signing of trade as a way to provide economic justice to American workers, whom he claims have been betrayed by previous governments and their trade policies. “A White House ceremony cannot hide the stark truth about China`s “Phase 1″ trade agreement: the agreement does absolutely nothing to reduce China`s subsidies to its manufacturers,” Scott Paul, president of the Alliance for American Manufacturing, which includes manufacturers and the United Steelworkers union, said in a tweet. All these “forgotten men and women” in American factories have once again been forgotten. The trade agreement has many victories for the U.S. industry, including the opening up of the biotech, beef and poultry markets.
Banks, insurers, pharmaceutical companies and the energy sector are also the main beneficiaries. “We need to make sure that this is properly implemented,” Lighthizer said. “This is the first agreement of its kind, and we need to make sure it works.” The agreement limits more than two years of tense negotiations and increasingly intense threats, which at times appeared to have the effect of plunging the United States and China into a permanent economic war. Mr. Trump, who was running for president in 2016 promising to be tough on China, urged his negotiators to rewrite trade conditions that his party said would have destroyed U.S. industry and jobs, and he imposed record tariffs on Chinese goods to ensure Beijing complied with its demands. While other presidents have tried to change China`s economic approach, Mr. Trump has pledged to do so.
The agreement calls for “China to ensure” that its purchases reach $200 billion by 2021, guaranteeing an export boom as Mr. Trump enters the 2020 election.