At a Turning Point USA event in Florida, President Donald Trump on December 21 told the media that the United States and China would sign their Phase One trade deal “very shortly”. Earlier this month, the Phase One deal was announced as part of a bid to end the trade war between the magnanimous economies. The dispute has affected world trade adversely bringing down the value of Yen, hitting global growth. The US would agree to reduce some tariffs in exchange for a big jump in Chinese purchases of American farm products in the Phase One deal.
Speaking to the Press, Trump said that the US has achieved a breakthrough in the trade deal and will be signing it very shortly.
US Trade Representative Robert Lighthizer said on December 15 said that 'phase one' of the trade deal between the United States and China is expected to double the exports to China over the span of the next two years and is 'totally done'. He added that it is close to an end irrespective of the need for translation and revisions to its text. While speaking to an international media outlet, Lighthizer mentioned some 'scrubs' in the text of the deal but it is 'absolutely done'.
Last week, Treasury Secretary Steven Mnuchin said that the “phase one” trade deal between the United States and China was “very good” for global economic growth, and added that the second phase could come in several steps. The deal with China aimed to create more reciprocal trade relations for many years, he added. The phase one deal will come to effect in January which will be followed by phase two. To implement the deal, they will have to come to an enforcement agreement after which further negotiations can begin, he said. Mnuchin also mentioned that there are also other important issues left to be able to proceed to 'phase two' - whether there will be a ‘phase two A’, ‘phase two B’ and ‘phase two C’.
After nearly two and a half years, a deal has been in the negotiations between Washington and Beijing. This agreement will reportedly reduce a part of US tariffs on Chinese goods in exchange for the increased purchases of the US agricultural, manufactured and energy products by some $200 billion over the span of two years. Beijing has even promised the protection of US intellectual property. This will curb the coerced transfer of American technology to the Chinese firms and open the country's financial services market to American firms along with avoiding manipulation of currency. However, the date to officially sign the trade agreement has still not been decided.