Trump confirms ‘Phase One’ trade deal, and Dec 15 tariffs canceled

on Dec 13, 2019
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  • The U.S. and China have struck a phase one trade deal-marking the formal fist steps towards ending the long-standing trade war.
  • China has also agreed to many structural changes and massive purchases of Agricultural Product, Energy, and Manufactured Goods, and much more.
  • The two countries will begin negotiations on phase two deal immediately, rather than wait until the 2020 election.

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The U.S. and China have struck a phase one trade deal-marking the formal fist steps towards ending the long-standing trade war.

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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 USTR said in a statement.

The United States will be maintaining 25% tariffs on approximately $250 billion of Chinese imports, along with 7.5% tariffs on approximately $120 billion of Chinese imports,” it said.

Trump said the U.S. has agreed not to proceed with a 15% tariff levy on some $160 billion worth of imports from China that were due to come into effect Dec 15.

China has also agreed to many structural changes and massive purchases of Agricultural Product, Energy, and Manufactured Goods, and much more.

The U.S. did not say whether they intended to monitor the effectiveness of structural changes.

The two countries will begin negotiations on phase two deal immediately, rather than wait until the 2020 election.

According to CNBC, the Finance Minister Liao Min said: “data and detailed terms will be released later.”

Negotiations on a second will be a more comprehensive deal to address the U.S.’s remaining concerns about China’s trade practices. 

According to the Global Times (the English-language Chinese paper), the text of the “phase-1” agreement “includes nine chapters.

They include intellectual property rights, technology transfer, food and agriculture, financial services, exchange rate, transparency, expanding trade, bilateral evaluation, dispute settlement, and final agreement.

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