Phase 1 Tariff Agreement
The United States and China have reached a historic and binding agreement on a first-phase trade agreement, which requires structural reforms and other changes to China`s economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, currency and currencies. The Phase One agreement also provides for China to make significant additional purchases of goods and services in the United States in the coming years. It is important that the agreement creates a robust dispute resolution system that ensures timely and effective implementation and implementation. The United States has agreed to substantially amend its customs measures in accordance with Section 301. Tariffs on nearly $160 billion worth of Chinese goods, including mobile phones, laptops, toys and clothing, on December 15, will be suspended indefinitely. China`s December 15 retaliatory rights, including a 25% tariff on U.S.-made cars, were also suspended. Other U.S. agricultural exports also outperformed their current targets, albeit on a smaller scale. Until September, maize exports to the United States were higher than the commitment, in part because China had complied with a 2019 WTO ruling against its unoccupied tariff quotas. (To do this, China also increased maize imports from other countries by more than 200 percent in 2020 from 2017 levels.9) U.S.
cotton sales to China also improved in 2020. But for Trump`s aggregate ratios, hundreds of millions of dollars in additional sales of pork, corn and cotton are fading from billions of dollars in lost soybean sales. Duncanson estimates that their soybean crop lost 30-40% of their value during the trade war, due to low prices and lack of Chinese demand. This loss was only partially offset by federal aid to the farmers involved. Duncanson hopes for a takeover once the trade agreement is signed. The President has agreed to relax some of the tariffs he has imposed on Chinese imports. In exchange, Beijing agreed to buy more U.S. products and make other changes.