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„There is no collusion. The only way for the president to reduce tariffs is for there to be part of phase 2 of the agreement, which is also fully applicable,“ he said. The agreement aims to ease some U.S. economic sanctions against China, while Beijing must strengthen the purchase of U.S. agricultural products and other products. For example, Mr. Trump cited beef, pork, poultry, seafood, rice and dairy products. U.S. tariffs of 25% on Previously imported $250 billion worth of Chinese goods will remain unchanged immediately. These could be withdrawn as part of a phase 2 trade negotiation, U.S. Treasury Secretary Steven Mnuchin said Wednesday.

A senior Trump administration official said the currency agreement was based on provisions of the U.S.-Mexico trade agreement, which require the three countries to disclose monthly data on international reserve balances and foreign exchange market interventions, as well as quarterly balance-of-payments and other government reports to the International Monetary Fund. In the economic and trade agreement, China promises to buy certain quantities of U.S. goods and services. Over the next two years, these order inflows will amount to $200 billion in U.S. exports above their current level. Read the nearly 100-day U.S.-China trade agreements Other U.S. trade agreements have had rules of application, but this is characteristic in the level of unilateral authority that exists between the two parties. Although U.S. commitments are most often summarized in the statement, „the United States confirms that existing U.S. measures allow for treatment equivalent to that provided in this article,“ China would also be entitled to impose sanctions if it does not comply with the United States and if the United States itself is unable to respond to substantive issues. Chinese buying bonds are the first shot in the arm. The agreement calls for China to purchase at least $40 billion in agricultural and related products per year for the next two years.

While this obligation to purchase imprisons China as a destination for American plants and employs American farmers, it is not clear that the United States can deliver this amount of agricultural goods to China. At least the U.S. may have to redirect exports to other markets to China. It is also unclear whether China would be more dependent than ever on U.S. agricultural imports or whether American farmers are willing to put all their eggs in the Chinese basket. U.S. agricultural exports to China peaked in 2013, when U.S. farmers sent about $29 billion in goods to China, $11 billion below the Phase 1 commitment. Finally, purchase commitments are more consistent with a state-led business model than a market-based model, which China intends to adopt by the United States.