Under the agreement, China has committed to purchase as much as $63.9 billion of U.S. covered goods by the end of 2020 compared to those basic plans for 2017. The definition of the baseline for 2017 based on Chinese import statistics implies a purchase target of $173.1 billion for 2020 (in red in panel a). The definition of the baseline for 2017 based on U.S. export statistics implies a target of $159.0 billion by 2020 (blue in panel a). 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 These could be withdrawn as part of a phase 2 trade negotiation, U.S. Treasury Secretary Steven Mnuchin said Wednesday. Former U.S. Vice President Joe Biden, who is a leading Democratic presidential candidate, said China was the big winner of Trump`s “phase one” deal with Beijing. In a letter, Chinese President Xi Jinping told Trump that he welcomed the Phase 1 trade agreement with the United States and was ready to stay in close contact with the U.S.
head of state. “This is a strong first step,” said Jeremie Waterman, vice president of the U.S. Chamber of Commerce for Greater China. “It starts with the process of addressing some of the structural concerns, but much more needs to be done. Meat, the core (American complaints about China`s aggressive technological policy) has not yet been processed. Obviously, it will have to wait until phase 2. With respect to merchandise exports to the United States, the agreement is estimated to include $95.1 billion in goods, or 73% of total U.S. merchandise exports to China ($129.8 billion) in 2017. Of total exports of covered products in 2017, exports amounted to $20.9 billion for agriculture, $66.5 billion for manufacturing and $7.6 billion for energy. The products discovered by the agreement – and therefore without a 2020 target – accounted for 27% ($34.7 billion) of total U.S.
goods exports to China in 2017. The agriculture chapter addresses structural barriers to trade and will support a dramatic expansion of U.S. food, agricultural and seafood exports, increase income from U.S. agriculture and fisheries incomes, increase rural economic activity and boost employment growth.
