This article will focus on the U.S.-China trade agreement, where we will have the details of the signing between the two nations
On Wednesday the trade agreement between the United States and China was signed, which is said to be phase one in Washington, where for experts it is not only notable but also omits things in international trade, this is referred to from a different angle that the importance is in the end of the escalation that had no defined direction, says Peter Petri professor of international finance at the Brandéis International Business School.
What is the trade agreement between the United States and China?
We can see that most of the U.S.-China trade agreement is based on China's commitments to purchase agricultural products from the U.S.," he says. We can see that most of the trade agreement between the United States and China is based on commitments to purchase agricultural products from China to the U.S., among other exports, where the value is for 200 billion dollars, without having greater force in the problems that led to this situation between the two countries, it was also agreed to hold six-monthly meetings to discuss economic reform and give solution to the current dispute that exists, In this trade agreement it is very strange that before the signing it was not provided by the administration of the real agreement, causing even uncertainty about the mechanisms in which the content of the text was applied, in relation to this said Dean A Pinkert, I am looking at the transfer of technology and intellectual property provisions, to understand the mechanisms of implementation, the question is how this will work? Between the United States and China.
This agreement only avoids the most complex problems with intellectual property in China, says Mark Williams, chief economist for Asia at Capital Economics, and will not change the way China operates its economy, with respect to the 5G Huawei not including anything at the moment, export control or new technologies, said Jacob Kirkegaard, senior fellow at the Peterson Institute for International Economics. What is more important is that there is nothing about Chinese subsidies and this part is the big omission says, the concern is that China is the technological competitor in the long term, which leads to the existence of a manipulation of the state subsidy system.
Treasury Secretary Steven Mnuchin and U.S. Representative Robert Lighthizer said phase two of the U.S.-China trade agreement will take place after the U.S. presidential election.This will prolong this situation of limbo in which business investment and capital is, so that it has been overwhelming for the U.S. tariffs, which has become a very negative factor, said Kirkegaard, on the other hand this uncertainty will affect the supply companies after the agreement, said Yerxa.
What are the expectations in the future of the U.S.-China trade agreement?
All indications are that there is much to be done in terms of structural reform, the longer it will take, Pinkert said, the less real is known about the timing of phase two, while Peter Navarro, U.S. trade advisor, is not sure. Peter Navarro, a US trade adviser, said that further trade sanctions are not yet ruled out in the future, and said that the United States has the right to undertake a response to the dispute, where tariffs are mostly present and in force, Although it is agreed that 15 percent of a tariff will be cancelled on a wide range of consumer goods which was in force last month, tariffs on Chinese products are reduced by 120 billion dollars from 15 percent to 7.5 percent, on Chinese imports there is still 25 percent of the tariff, we are talking about 250 billion dollars.
The fact that it is an industry makes some sense to be subject to tariffs on international supplies said by Kirkegaard, was found a transfer of, complete increase in tariff costs in a document by the National Bureau of Economic Research, for a sum of 52 billion dollars by import buyers, Reducing overall by 2 points to 19 percent, this before the trade dispute, which then was 3 percent according to the Peterson Institute, has a significant impact, says Pinkert, where 19 percent is a considerable amount, so it's all in the balance on the U.S.-China trade agreement. We arrive at the end of this interesting article, presented in this content, the trade agreement between the United States and China, being this of global interest
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