UCLBS News

September 14, 2021

China Us Trade Agreement Pandemic

Filed under: Uncategorized — Administrator @ 3:49 am

The “Phase One” trade agreement between the United States and China was signed on January 15, 2020 EST, the same day that the Chinese Center for Disease Control and Prevention (CCDC) internally declared a Level 1 emergency response. The fortuitous moment of these two events should arouse the curiosity of all. It is impossible that Senior Chinese Officials and Negotiators on Trade Agreements were not aware of these emergency measures at the highest level of the CCDC. “Given the wide variety of differences between the United States and China, it may be difficult to make further meaningful progress in the next round of trade negotiations,” Biswas added. Despite a recent report from the Trump administration suggesting otherwise, U.S. agricultural exports to China have not yet kept pace with phase one commitments.7 While better than manufacturing, it took until September for agricultural exports to return to their pre-trade war level (Chart 3). In September, they were only 66% of their seasonally adjusted targets. In other words, China must import 62% of the total agricultural commitment in October, November and December if it is to meet the 2020 target. From the beginning, an additional $200 billion in additional sales to China was a worrying target. Nearly 30 percent of U.S. exports to China are not even covered by the Phase One agreement.

And for those who covered the deal, a review of 15 product groups shows that their sales to China have been influenced by a number of factors, including plane crashes, outbreaks, export controls, World Trade Organization (WTO) court rulings, the persistent impact of trade war tariffs, and the pandemic. 2. On July 6, 2018, the Trump administration imposed its first tariffs on $34 billion worth of Chinese goods. At the same time, China retaliated. The two countries imposed tariffs until September 2019 on a total of more than $450 billion in bilateral trade. The January 2020 agreement applies to U.S. exports of goods and services. In the absence of detailed data on high-frequency trading for services, these bonds are not valued here.

Current and former trade representatives on both sides of the Pacific have shown little enthusiasm for a revival of the trade war and predicted that the deal will survive. Energy accounted for only 8% of the total goods covered by the first phase purchase obligations, but their 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 have the capacity to produce to meet the targets.10 In addition, the assessment of the U.S.-China trade relationship based on a significant increase in fossil fuel exports – among the targets, these include only crude oil, liquefied natural gas, coal and refined products – ignores global concerns related to climate change. A little more than six months after the agreement entered into force, the landscape is very different. Relations between the United States and China are increasingly strained and global trade has been severely hampered by the virus pandemic. This dramatic deficit is obviously not surprising. China`s energy consumption collapsed in the first quarter of 2020 as a result of lockdown measures and the economic collapse resulting from COVID-19. The drop in global demand has also led to a drop in the price of oil, which would require an even greater increase in the volume of energy that China must buy to meet the spending target. .

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