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Trade Truce Agreement

“It also means that Chinese retaliatory measures could be reintroduced, hampering farmers` willingness to invest to meet the very hard export targets of the agreement.” U.S. and Chinese officials say the agreement covers intellectual property protection and covers financial services and currencies, while it contains a dispute settlement provision that Mnuchin says will be binding for the first time. The U.S. economy – a powerful force in economic policy – has long acted as a burden in U.S.-China relations. More than 150 trade associations have united against U.S. tariffs and lobbying on trade issues has increased after 2018. But if money speaks up in American politics, why haven`t American companies limited the president – when many American companies see trade war as a bad thing for the economy? A first pact that cooled tensions in an election year follows months of escalating tariffs and a trade war that seemed never to stop. Whether the agreement will lead to a lasting trade peace remains uncertain. While Washington, on January 30, will halve the $120 billion tariff imposed in September on Chinese imports by 15%, its other tariffs on goods worth $250 billion will remain unchanged and the backtracking can be reversed if the United States discovers that Beijing is not keeping its end of the bargain.

Powerful business groups have strongly opposed tariffs, perhaps too hard. The access channels to Washington remain constant, but the flood of companies trying to kill each other through these channels may have supplanted each other. In Song Kim`s research has shown that a typical commercial invoice could only have the attention of a lobby group. In contrast, more than 4,000 companies attempted to lobby the U.S. Trade Representative and Congress Office for Section 301. Continued tariffs, despite obvious economic costs, also pollinated Chinese analysts and policymakers, who expected interest groups aggrieved by tariffs to restrict Trump in trade negotiations. What`s going on now? This bipartisan consensus on confrontation with China is unlikely to fade, regardless of who wins the presidential election.