JAKARTA (TheInsiderStories) – The first phase of trade deal between United States (US) and China “potentially very close.”, said President Donald Trump on Tuesday (11/27). Earlier, China’ President Xi Jinping has said Beijing wanted a deal with Washington.
But, Xi said, his country will fight back if necessary against his counterpart Trump’ threat that Chinese imports will face more duties from Dec. 15 if a phase one agreement isn’t inked by then.
On Tuesday, White House adviser, Kellyanne Conway, conveyed, that US trade representative, Robert Lighthizer and treasury secretary, Steven Mnuchin, has spoke with Chinese Vice Premier Liu spoke by telephone and agreed to keep working on the remaining issues. China’ commerce ministry stated, the world’ two largest economies try to hammer out a “phase one” deal.
As reported, the completion of a phase one deal had been expected in November, but an official at the White House said it could slide into the new year. Earlier, Trump also said he expected to quickly dive into a second phase of talks once the “phase one” had been completed.
“We’re getting really close and that first phase is significant. The president wants a deal. But President Trump always waits for the best deal,” she said as reported by Fox News, adding that Trump wanted to “do this in phases, in interim pieces because it’s such a large, historic trade deal.
Conway conveyed, China had invited Lighthizer and Mnuchnin to visit Beijing for in-person talks and they were willing to go if they saw “a real chance of getting a final agreement.” A source familiar with the trade talks said the US’ officials could go to Beijing on Thursday.
US, Canadian and Mexican representatives are set to meet in Washington to discuss the trade deal to replace the North American Free Trade Agreement (NAFTA), Politico reported on Tuesday. The meeting will includes Lighthizer, Canadian deputy prime minister Chrystia Freeland and Mexico’ deputy foreign minister for North America Jesus Seade.
Last year, the third parties had finally decided to join a new trade deal to replace the NAFTA. The new trade deal, named United State-Mexico-Canada Agreement (USMCA).
Trump has negotiated a new USMCA, which will benefit American workers and businesses where NAFTA has failed. Ha also said his Administration has secured a preliminary US – Mexico Trade Agreement that modernizes and rebalances the trade relationship to reflect the realities of the 21st century on August 28.
However, Trump insisted that the trade deal will not be a new NAFTA, which the controversial businessman seeks to terminate since taking office. While there are details to be meted out, the deal could send a signal that Trump is wiling to reach a compromise with regards to trade issues.
This is a positive development for market participants, who are nervous with the escalation tit-for-tat trade tariffs between the US, China and the European Union. He believed, this agreement will create more reciprocal trade that grows the economy, supports high-paying jobs for American workers, and protects American intellectual property.
New “rules of origin” requirements to incentivize billions a year in vehicle and automobile parts production in the US and will supporting high-wage jobs. He continued, the 24-year-old NAFTA was outdated and unbalanced, hurting American jobs and businesses. Many Americans have been hurt by closed factories, exported jobs, and broken political promises resulting from the old NAFTA.
Last year, NAFTA has contributed to US’ ballooning annual goods trade deficit, which grew from US$115 billion in 1993, the year before the pact’ implementation, to nearly $800 billion in 2017. The US went from a $1.6 billion goods trade surplus with Mexico to a $70 billion goods trade deficit during that same time period.
Trump explained, the old NAFTA includes many outdated provisions that have not been updated to reflect modern standards, new technologies, or the 21st century global economy.
He continued, American auto manufacturers and workers will benefit from new rules of origin requiring 75 percent of auto content to be produced in North America. The new agreement also will incentivize billions of dollars in additional US vehicle and auto parts production, added by Trump.
Workers will also benefit from rules that will incentivize the use of high-wage manufacturing labor in the auto sector, supporting better jobs for American workers. Furthermore, he stated, Canada will eliminate its “Class 7” program that allows low-priced dairy ingredients to undersell American dairy products. And, Canada will provide new access for American dairy products, eggs, and poultry.
USMCA also contains the strongest measures on digital trade of any agreement. This includes rules to ensure data can be transferred cross-border and to minimize limits on where data can be stored.