After almost 18 months of trade war, and the subsequent escalation of tariffs, US President Donald Trump announced Friday the closing of the first phase of a pact with China that includes the partial withdrawal of tariffs and the increase in Chinese purchases of US products
"We have agreed on the first phase of a very large trade agreement with China. They have accepted many structural changes and huge purchases of manufactured goods, agricultural and energy products," Trump said in his Twitter account.RELATED
He also added that "the tariffs planned for December 15 will not be applied due to having reached the agreement."
"We will begin negotiations on phase two of the agreement immediately, better than waiting until the 2020 elections (in the United States). This is an amazing agreement for everyone," he said.
Specifically, Trump said he expects China to double annual purchases of US agricultural products, reaching an annual value of $ 50 billion.
The president resorted to his hyperbolic irony to describe the pact: "Affectionately, I tell farmers and farmers that they are going to have to buy much larger tractors because (the pact) is a huge amount of business," he said, commenting on the news. shortly before meeting with the president of Paraguay, Mario Abdo Benítez, whom he received at the White House.
Almost simultaneously, Chinese Vice Minister of Commerce Wang Shouwen confirmed at a press conference that this "first phase" agreement addresses issues such as technology transfer, intellectual property, trade expansion and the establishment of mechanisms for the resolution of disputes, among others.
"The agreement is in line with Chinese reform and openness policies and their needs to promote high-quality economic development. It will help strengthen the protection of intellectual property, improve the business environment, expand access to the Chinese market and better safeguard the legal rights and interests of companies, including foreign ones, in China, "he said.
The pact implies, however, that 25% tariffs are maintained on Chinese imports valued at 250,000 million dollars, along with reduced levies of 7.5% on additional imports valued at approximately 120,000 million dollars, said Robert Lighthizer, representative US Foreign Trade it's a statement.
A statement issued by the official Chinese agency, Xinhua, also assured that the United States pledged to phase out the charges that both parties have imposed during the dispute.
Lighthizer, who led the negotiations with Treasury Secretary Steven Mnuchin, stressed that the agreement achieves significant and completely verifiable structural changes, and rebalances trade relations between the US and China. "
The pact of this first phase was applauded from the business community, although with a cautionary note.
"It is an encouraging first phase that sets the ground in the face of a possible further deterioration in bilateral relations," said Craig Allen, president of the US-China Business Council, which brings together more than 200 US companies doing business in China.
Allen warned that "it is still the beginning" and that the "issues facing the US and China are complex and diverse," so "it is unlikely that they will be solved quickly."
The negotiations between both parties had suffered several shocks, with conflicting information and veiled criticism, since a principle of agreement was announced in October, which is a victory for Trump, who has made protectionism and trade war with China one of Your top priorities.
Trade tensions between the two major world economies, which began last year, have had profound global consequences.
In its latest global growth forecasts, published in October, the International Monetary Fund (IMF) lowered its projections of expansion to 3% this year, two tenths less than in July, weighed down by the doubts generated by this dispute. EFE