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In U.S.-China Phase 1 trade deal, enforcement may end in 'We quit'

Reuters | January 16, 2020

The Trump administration is touting the U.S.-China Phase 1 trade deal’s dispute settlement and enforcement mechanism as the major difference between the 86-page agreement unveiled on Tuesday and past pledges by Beijing to change its trade practices. But the final result of any dispute that prompts new U.S. tariffs to be slapped back on Chinese goods could tear the whole trade deal apart, according to the text of the agreement released on Thursday. U.S. Trade Representative Robert Lighthizer insisted on a strong enforcement mechanism “with real teeth” to hold China to its Phase 1 pledges to protect American intellectual property, curb the forced transfer of U.S. technology to Chinese firms and boost purchases of U.S. goods and services by some $200 billion over two years.

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Economic Report of the President

To the Congress of the United States: For the past two years, my Administration has been focused on strengthening the United States economy to enable greater opportunity and prosperity for all Americans. During my first year in office, we began by building a foundation of progrowth policies. We initiated sweeping regulatory reform issuing 22 deregulatory actions for every new one added and signed into law the Tax Cuts and Jobs Act, the biggest package of tax cuts and tax reform in our country’s history.

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