How the US-China negotiations differ from any other trade agreement – Journal

WASHINGTON: The trade deal that US negotiators are looking for with China could have more in common with a sanctions control regime than a traditional trade pact.

The administration of US President Donald Trump is pushing China to agree to regularly review its compliance, a prerequisite for any trade agreement between the two largest economies in the world, according to sources close to the discussions.

The re-examination proposal is a key element in a US-China deal that could be different from conventional trade agreements around the world, in part because of the deep mistrust between their two governments.

Here is an overview of the issues specific to bilateral negotiations: Not likely. The US has made no public offer to eliminate tariffs, although negotiators from both countries are trying to avoid a March 2 tariff increase of $ 200 billion worth of Chinese products.

US officials see the persistent threat of tariffs as the "cutting edge" of any deal. The United States alleges that Chinese companies have forced their US partners to improperly transfer patented technology – an allegation refuted by Beijing. The demand for frequent conformity badessments reflects the frustration of US officials who have complained that China has not fulfilled its past commitments to implement free market reforms.

China has offered to buy additional services and goods in the United States, including soybean and energy products, said people familiar with the negotiations.

US Treasury Secretary Steven Mnuchin said in December that China has offered to make additional purchases of $ 1.2 trillion from the United States. Bloomberg said Friday that China has proposed purchases to eliminate the US trade deficit with China by 2024.

Economists have argued that it would be difficult to significantly reduce the US trade deficit, given that the strength of the US economy and consumer spending mean that the demand for imports is on the rise. strengthens. The United States recorded a $ 375 billion trade deficit with China in 2017, and is likely to exceed that of 2018 when final US Census Bureau trade data are released.

Posted in Dawn, January 20, 2019