Us China Trade Agreement Fact Sheet

19 décembre 2020

Trade in food and agricultural products. Chapter 3 of the agreement contains long and detailed rules to facilitate agricultural trade between the two countries, which are primarily aimed at facilitating U.S. access to the Chinese market. Chapter 3 appendices cover a number of specific areas, such as dairy products and infant formula; animals of the bovine species; meat, poultry and processed meats; Meat control Aquatic products Rice; additives for animal feed; Pet food Chinese subsidies to its domestic agricultural producers; Biotechnology in agriculture; Food security. Second, one of the major victories of the first phase, which was affirmed by the Trump administration, was China`s agreement to increase its purchases of U.S. goods by $200 billion over the next two years. Assuming that China can process this level of additional imports by the end of 2021, this agreement could strengthen the Chinese government`s role in the economy and, in any event, provide only temporary benefits to the United States. The details of the fact sheet are vague, but based on other statements from the Trump administration, it appears that this process does not include a neutral assessment of compliance disputes. If consultations fail, the United States will decide for itself whether China is violating the agreement and will decide on its own appropriate customs sanctions. We believe that this is not really a dispute settlement mechanism, but simply a process of resuming the customs war when a party is not satisfied with the agreement (and could have resumed without such a provision). But this is still a bit speculative and we must first see the final text.

Macroeconomic policy and exchange rates. Chapter 5 aims to address U.S. concerns about China`s former manipulation of the renminbi exchange rate to boost Chinese exports. However, this chapter does nothing but confirm China`s commitment to the International Monetary Fund not to manipulate its currency to improve the trade and competitive competitiveness of exports. Shortly before the signing of the Phase One agreement, the U.S. Treasury withdrew its former currency manipulator designation for China. Total U.S. exports of goods and services to China totaled $188 billion in 2017. Exceeding this amount over the next two years to « no less than $200 billion » is a little difficult to understand.

Do U.S. producers have so much to sell in China? Will there be just a deferral of buyers and sellers` purchases, so that American companies sell less in the rest of the world and more to China? At a press conference on Friday, Chinese government officials stressed that the extension of trade would be based on market principles and WTO rules. How will this work if there is an express exchange quota that needs to be respected? U.S. Advanced Chinese Purchases