There appears to be particular attention being paid to imports of agricultural and financial services, both of which constitute their own chapters under the agreement. Agricultural regulations support the expansion of U.S. agricultural exports, including seafood, poultry rice, dairy products, infant formula, horticultural products, feed and additives, pet food and agricultural biotechnology. U.S. tariffs of 25% on Previously imported $250 billion worth of Chinese goods will remain unchanged immediately. These could be withdrawn as part of a phase 2 trade negotiation, U.S. Treasury Secretary Steven Mnuchin said Wednesday. Energy accounted for only 8% of the total assets covered by the first phase`s purchase obligations, but its objectives were particularly questionable. Bloomberg reported that it was only after the signing of the agreement that the government learned from U.S. industry that it did not lack production capacity to meet the targets.10 In addition, the assessment of U.S.-China trade relations on the basis of a significant expansion of fossil fuel exports – whose targets include only crude oil , liquid natural gas, coal and refined products – ignores global concerns about climate change. The first phase agreement will permanently reduce tensions between China and the United States in the short term and may even boost U.S.
exporters in some sectors. However, the unintended consequences of China`s handling of its new commitments, the way other trading partners will treat China in the future, and international efforts to rewrite WTO rules on trade relations, market competition and government subsidies will determine whether the trade agreement was worth it. This first trade agreement is seen as the first sign of de-escalation in the long trade war between the United States and China. For more than 18 months, the world`s two largest economies have been fighting crises, followed by back-and-forth negotiations week after week – not to mention a customs war, the introduction of foreign technological restrictions and WTO business. There is no reason why China has not met the Phase 1 targets. At first, the covid 19 pandemic beat the Chinese economy on its heels, but its trade recovered faster than most others. And some U.S. exports to China – including medical care, pork and semiconductors – have even accelerated in 2020.