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US, China to sign trade deal on January 15, says Trump
The trade deal is expected to be limited in scope under which China will increase its purchases of American farm produce and the US will put off and partially slash tariffs on goods from China.
US President Donald Trump announced Tuesday a “very large and comprehensive” Phase One trade deal will be signed with China at the White House on January 15 and he will travel at a later date to Beijing to begin talks on Phase Two.
The deal is expected to be limited in scope under which China will increase its purchases of American farm produce and the US will put off and partially slash tariffs on goods from China. And it will bring to an end, officially, the two-and-half-year long trade war between the world’s two largest economies.
The fate of a trade agreement with India, however, remains unclear with no word yet on dates, despite the two sides signaling for weeks now it’s coming soon. India and the United States are also discussing a two-part agreement: a short-term deal that will restore India’s benefits under a US preferential trade programme in exchange for increased market access for US goods. A longer-term arrangement will include a Free Trade Agreement, and tackle other thornier issues.
The finalisation of limited US-China Phase One deal was announced on December 13 but without a place and date of the formal signing ceremony. “I will be signing our very large and comprehensive Phase One Trade Deal with China on January 15,” President Trump wrote on twitter from his resort in Florida, where he has been holidaying. He also gave some details that the signing ceremony will take place at the White House in the presence of “high level representatives of China”. Earlier, Trump had indicated he would be signing the deal with President Xi Jinping. It will be Vice-Premier Vice-Premier Liu, the chief trade negotiator, instead.
“At a later date I will be going to Beijing where talks will begin on Phase Two!” Trump added.
Neither side has submitted drafts of the Phase One deal but American officials have said that it will require China to will ramp up its purchases of American farm products substantially — by $32 billion over the next two years — and other exports. And the US, in return, will put off additional tariffs that were to go into effect earlier this month and partially roll back some of the hikes in place. But US tariff of 25% would remain on $250 billion of Chinese goods.
US officials have also indicated that China has given commitments on intellectual property rights and forced transfer of technology.
