Mr. Robert Lighthizer, the U.S trade representative, had announced yesterday that parts of the interim deal have been finalized with China. According to the CNBC sources, however, while the Trump administration is looking forward to signing the deal with the start of the next month, advisor for the government, Mr. Peter Navarro, has raised concerns about breaching a few of the clauses that were in place to protect the U.S technology and intellectual property theft. Such protections were included in the original trade deal (Phase I) but were removed following the negotiations with Chinese Vice Premier Liu He.
China Must Commit To The Original Deal Or Walk Away Without One – Mr. Navarro
The sources have further added that Mr. Navarro is keeping a rather hard stance regarding such protections and is imploring the Trump administration to consider pushing China to agree to the original promises or walk away without a deal. However, his efforts have been largely unfruitful so far, as per the sources. While he continues to fight the phase 1 of U.S – China trade deal, he hasn’t been able to get much support or attention from the authorities.
Mr. Navarro has a track record that contributes greatly to his failure in gaining traction in his fight against the terms and conditions of the interim phase 1 deal between the United States and China. In one of his academic works, he was previously accused of citing “Ron Vara”, a fabricated source. He has also taken the heat from media on numerous occasions in the past for calling unidentified sources, “fake news”.
Forex Market Has Not Responded To The News So Far
Owing to his track record, the Forex market has not responded at all to the news of Mr. Navarro’s request to the government to push China to commit to what was originally included in the deal. However, in an event that he manages to get support and the Trump administration decides to act on his recommendation even partially, this could potentially disrupt all the progress made so far in the U.S – China trade talks. The implications for the currency market, in which case, are going to be massive, according to the Forex analysts.
The details of the interim deal made public so far include Chinese purchases of $40 to $50 billion of U.S agricultural products and ensuring transparency in the affairs of its currency market. It further includes the removal of barriers previously imposed on financial services companies and permits the United States of America to retaliate in an event of intellectual property theft without allowing China to retaliate back.