China Trade Agreement Phase 1

The deal aims to ease some U.S. economic sanctions against China, while Beijing is to step up the purchase of U.S. agricultural products and other goods. Trump cited beef, pork, poultry, seafood, rice and dairy as examples. The big question, some say, is not whether the trade deal will survive, but what form of trade confrontation will take its place at a time when U.S. economic policy toward China is dictated less by long-term national interests than by short-term electoral calculations. US President Donald Trump`s Phase One deal with China, one of the few glimmers of success that has emerged from three years of damaging trade wars, has slowly died, with the economic ravages of the coronavirus pandemic making its massively ambitious trade goals almost inaccessible. Soybeans are a good example of the backlash against Trump`s trade policy. Before the trade war, they accounted for nearly 60% of U.S. agricultural exports to China. It is no coincidence that China chose soybeans in retaliation. Eight of the top ten soybean-producing countries voted for Trump in 2016, including many major Swing States.8 House spokeswoman Nancy Pelosi, D-Calif., said in a statement that “with the loss of the economy of thousands of manufacturing and farm country jobs, affected by the damage caused by President Trump, the Americans remain nothing but a striking televised ceremony, in an attempt to conceal the total lack of concrete progress.

Transparency or accountability in this Phase 1 agreement. A statement from Washington said the parties had discussed “the steps taken by China to implement the structural changes required by the agreement.” The U.S. agricultural belt, with excessive influence in U.S. policy, was the best-published target of Chinese retaliation against Trump`s tariffs. Agricultural exports developed relatively well before the trade war, but they suffered6 Unlike hard-hit U.S. producers, U.S. farmers received federal subsidies of tens of billions of euros in 2018, 2019 and 2020. Agriculture accounts for only 22% of the products covered by the purchase obligations, less than a third of the size of manufacturing. The Phase 1 agreement does not cover nearly 30% of the products that the United States exports to China. Not surprisingly, in 2020, China`s imports of uncovered goods were even worse, 26% less than in 2017 (Figure 1, panel c). On the other hand, China`s imports of uncovered products from the rest of the world increased by 3.4% (panel d). “We need to make sure this is properly implemented,” Lighthizer said.

“This is the first deal of its kind, and we need to make sure it works.” There is no reason why China has not achieved the objectives of the first phase. The COVID-19 pandemic initially put the Chinese economy on the trail, but trade recovered faster than most. And some U.S. exports to China — including medical care, pork and semiconductors — have actually accelerated in 2020. . .