MUMBAI (Commoditiescontrol Bureau) - China and the US announced on Friday they have reached a phase one trade deal including some tariff relief, increased agricultural purchases and structural change to intellectual property and technology issues.
As Chinese officials briefed reporters on the details of the agreement Friday, President confirmed the news in a tweet shortly afterward. The announcement comes after almost a year and a half of posturing between the world's two largest economies that centered on trade imbalances, access to markets and concerns about intellectual property theft.
The US plans to scrap tariffs on Chinese goods in phases, a priority for Beijing, Vice Commerce Minister Wang Shouwen said. However, Wang did not detail when exactly the US would roll back duties.
President Donald Trump later said his administration would cancel its next round of tariffs on Chinese goods set to take effect Sunday. In tweets, he added that the White House would leave 25 percent tariffs on USD 250 billion in imports in place, while cutting existing duties on another USD 120 billion in products to 7.5 percent.
China will also consider canceling retaliatory tariffs set for Sunday, according to Vice Finance Minister Liao Min.
Beijing will increase agricultural purchases significantly, Vice Minister of Agriculture and Rural Affairs Han Jun said, though he did not specify by how much. Trump has insisted that China buy more American crops as part of a deal, and cheered the commitment in his tweets.
Both sides said they would move to make changes related to intellectual property, technology transfers and financial services. The White House has repeatedly said it wants to address those issues as Trump pushes to crack down on what he calls Chinese trade abuses.
The agreement still needs to go through legal procedures as Washington and Beijing work toward setting a time for inking it.
Trump added Friday that the US would begin negotiations on the next phase of the trade deal “immediately, rather than waiting until after the 2020 Election.” Trump had suggested he could wait until after November 2020 to strike an agreement, a comment that worried investors.