The president of the United States, Donald Trump
, announced the signing of a trade agreement with China. Phase one of the pact will be signed on January 15 at the White House, the president said. There, issues such as technology transfer, intellectual property, trade expansion and the establishment of mechanisms for the resolution of commercial disputes are addressed, among others. In 2019, the lack of agreement between the United States and China was one of the elements that generated global volatility. The signing of the agreement would formally end with a year and a half of commercial war.
"I will sign our comprehensive and complete phase one trade agreement with China on January 15." This was announced by the US president through his Twitter account. "The ceremony will take place at the White House. High level representatives of China will be present. At a later date, I will go to Beijing, where the Phase Two talks will begin, "Trump said through the same social network.
The president of the United States had assured a week ago that the agreement with his Chinese counterpart, Xi Jinping, was close to end the trade war between the two nations. The Chinese president said the bilateral agreement is based on mutual respect and the principles of equality. He said that one of the main objectives of the agreement is to contribute to peace and prosperity worldwide.RELATED
Chinese Vice Minister of Commerce Wang Shouwen confirmed that the first phase of the pact between the two economies addresses sensitive issues such as technology transfer and intellectual property. The dispute over the development of 5G data transfer networks is one of the points that generated the greatest tensions in recent months.
The trade agreement will have among its priorities to withdraw in stages the import tariffs that both economies were applying in the last year and a half for different strategic products of bilateral trade. The agreement implies, however, that US tariffs of 25 percent are maintained on Chinese imports valued at 250 billion dollars. The 7.5 percent levies for the importation of products for a volume of 120 billion will also be maintained.
Negotiations between the two countries suffered several round trips in recent months. Contradictory information was communicated and cross-criticism was made between the referents of both nations even though a principle of agreement had been announced in October. The trade crisis began in 2018 and caused important consequences for the global economy.
In its latest macroeconomic forecasts for October, the International Monetary Fund lowered its projections of global GDP expansion to 3 percent. This is two tenths less than in July and the explanation for the decline was the trade dispute between China and the United States. Financial assets in 2019 experienced strong international volatility in the face of announcements of import tariffs and the news in which the fall of the trade agreement was anticipated. The United States and China represent the world's first and second economy. What happens in their bilateral relations has a strong effect for the rest of the developed and emerging countries.