Signing a preliminary historic agreement between Beijing and Washington to defuse the trade war


Subscribe to receive the most important news

US President Donald Trump signed with Chinese Vice Prime Minister Liu He the first-stage agreement, which constitutes a “historic stop” to defuse the unprecedented trade war between the world’s two largest economic powers, and Trump said during the signing of the agreement, yesterday evening: “Today It constitutes a historical milestone, a station that had not previously been surpassed with China, in the direction of a fair and mutual trade agreement between the United States and China.».

According to the agreement, China pledged to purchase additional US products worth 200 billion dollars during the next two years, in addition to basic purchases of 186 billion dollars in 2017, with the aim of reducing the trade deficit with the United States, in exchange for the abolition of some customs duties under the initial trade agreement between the two sides, which It aims to end the strongest trade conflict in 18 months, which has caused turmoil in global markets and fears of a global recession and economic.

According to the documents of the agreement issued by the White House and the Chinese Ministry of Finance, the commitments include additional purchases of China from US energy worth 54 billion dollars, an increase of 78 billion dollars in purchases of manufactured goods, additional purchases of agricultural products by 32 billion dollars, and an increase in service purchases by 38 One billion dollars, which means that American exports to China should jump to 263 billion dollars this year, and to 309 billion next year, according to the CNN channel. that. The American TV.

The Chinese vice premier said that Chinese companies will purchase US agricultural products worth 40 billion dollars annually during the next two years “on the basis of market conditions”, which may impose the timing of purchases in any specific year, and China would refrain from committing to purchase specific quantities of American agricultural commodities, and signed New contracts for the purchase of soybeans from Brazil since the outbreak of the trade war with Washington, and Liu added that the agreement will not affect “the interests of third parties”, referring to deals with other suppliers of agricultural commodities, and added that Chinese companies will import American agricultural commodities according to the needs of consumers and demand Alo Trash in the market.

The first-stage agreement abolished US tariffs that Washington had planned to impose on Chinese-made cell phones, games and personal computers, and cut the average tariff rate by half to 7.5 percent for other Chinese goods worth about $ 120 billion, including flat-screen TVs, bluetooth headsets and shoes. , But the agreement kept a 25% fee on Chinese products worth $ 250 billion, and it includes goods and components used by American manufacturers, as well as a fee imposed by China in return, on American goods worth more than $ 100 billion, according to the agreement A The one whose full text was published on its 94 pages aims to increase Chinese imports of American products to reduce the US trade deficit toward China, which is one of the most prominent demands of the White House..

Trump ignited the trade war in the spring of 2018 with the aim of putting an end to “unfair” Chinese trade practices, according to Washington, and in this context, strict customs duties were exchanged between the two countries that affected hundreds of billions of dollars in goods..

The agreement includes provisions related to the protection of intellectual property and the conditions for the transfer of technological knowledge, which are among the first American demands, and it stipulates that any technology transfer or obtaining a technology license is built on a voluntary basis and that “it is the result of a mutual agreement” after Beijing imposed on American companies operations. Forced transfer of its technological skills as a condition for working in China, and the agreement devotes a whole chapter to opening the Chinese market to American financial services, and Trump confirmed that he intends to visit China soon, while negotiations are expected to start for a second phase of the agreement “immediately”, and the American parties and China intend Search agreement to address the conditions more sensitive topics such as information security.

Trump said that Beijing pledged to take measures to counter the problem of pirated or counterfeit goods, and mentioned that the agreement includes strong protection of intellectual property rights, but Trump stressed that the heavy tariffs currently imposed on more than 370 billion dollars of Chinese products, will remain in effect until the signing of the second phase From the agreement, he said: “We will keep the customs fees, but I will agree to abolishing them if we reach the conclusion of the second stage.” He added, “I will keep them, or we will not have any paper to negotiate.” Trump acknowledged the need for more negotiations with China to solve a host of other problems, but he welcomed the agreement. Was considered A victory for the American economy and his administration’s policies regarding trade, he described the stage 1 agreement as one of the pillars of his election campaign in 2020, and Trump added in statements made by the White House and US and Chinese officials to him: “Together, we correct the mistakes of the past and achieve a future of justice and economic security for workers and farmers. And American families».

The United States and China recognized that purchases between the two sides will be made at market prices based on commercial considerations, and that market conditions, especially for agricultural goods, may impose the date of purchases in any specific year, as the text of the agreement says.

For his part, US Treasury Secretary Stephen Mnuchen said, “For the first time, we have a comprehensive agreement on technological problems, financial services and additional” purchases of Chinese commodities, as well as a “real mechanism for implementing” the agreement. Intellectual “, and Mnuchin was warned ahead of the signing of the statements of the« CNN. that. Pei. C »American TV that Washington remains ready to tighten tariffs if Beijing does not honor its obligations. The US administration expects this agreement to boost the world’s first economy by half a percentage point.

Trump’s trade war reflected heavily on the agriculture and manufacturing sectors in the United States, the two sectors that brought the Republican president to the White House in 2016, and Trump bet on the national sense of workers in agriculture and industry, so he asked them to be patient with a better future, and Trump echoed what was called Trade wars are easy to win, as the US economy has not been affected by tariffs, while Chinas economic growth has slowed. However, this unprecedented dispute in terms of its severity and duration curbed investors, and consequently reflected on global growth, and on the growth of the Chinese and American economies, and American importers incurred the largest portion of customs duties costs. “We know that there will be differences between our two countries, but this day is the beginning of a new chapter in trade relations between the two largest economies in the world,” said US Vice President Mike Pence.».

For his part, Chinese President Xi Jinping announced in a letter to Trump, which was read out by the Chinese negotiator, that the agreement would be useful to “China, the United States and the whole world.”».

The deal represents a boost for American farmers and manufacturers of cars and heavy equipment, but some analysts have questioned Chinas ability to replace imports of other trade partners with more U.S. imports, and Trump’s electoral base is expected to be the primary beneficiary of the agreement, especially farmers and industry workers, who were Side victims of the trade war.

Major indicators in global stock markets rose to record levels after the signing of the agreement, but later slowed down due to fears that the agreement would not calm trade tensions for a long time with many thorny issues still unresolved, as oil prices rose, supported by expectations of an increase in Chinese purchases from Oil and gas from the United States, Brent global benchmark crude rose 30 cents, or 0.5%, to 64.30 dollars a barrel, while US crude rose 30 cents, or 0.5%, to record 58.11 dollars a barrel..

In a statement, US House Speaker Nancy Pelosi said in a statement that Trump’s strategy toward China “has done great long-term damage to American agriculture, and has shaken our economy in exchange for more pledges that Beijing has made for years.”».

Source link


Please enter your comment!
Please enter your name here