The US had threatened that if China did not agree to the agreement, it would increase the import duty on its $ 200 billion products imported from it from 10 percent to 25 percent.
US Finance Minister Steven Newchin says that China will purchase an additional $ 200 billion (Rs 14,200,00 crore) worth of goods in 2 years under the first phase of the proposed trade agreement. America and China are the world’s first and second largest economies. Both have been engaged in a trade war for two years. This is an attempt to compromise.
President Donald Trump told reporters at the White House last week that a trade deal with China would likely be reached on January 15. Trump said, “You know, we’re probably going to have a very big deal with China on January 15, in which there are many more things.” China’s Ministry of Commerce confirmed this on Thursday. He told that only Deputy Prime Minister Liu will be in the US from Monday to Wednesday to sign the first stage agreement with the US.
40-50 billion dollars purchase of agricultural goods
US Finance Minister Steven Newchin said in a conversation with ABC News on Sunday that China would buy $ 200 billion in goods under the first phase agreement. He said, ‘In two years, this additional goods of 200 billion dollars will have different types of goods. In this, agriculture sector will be worth $ 40-50 billion, especially.
He also said that some people are raising the question whether American farmers can produce so much extra product. “This is a big opportunity for our farmers. I think they will buy more land and produce a large amount of agriculture (commodities). ”He said that this would be a first stage agreement. Later steps will be discussed. In the first phase there will be provisions regarding actual compliance.
America had threatened to increase import duty
Trump has been accusing China of misbehaving in trade and blamed China’s unfair policies for the huge trade deficit of US $ 375 billion annually in mutual trade. He had earlier said that if China did not agree to the agreement after March 1 (90-day deferment), the US would increase the import duty on its $ 200 billion products imported from it from 10 per cent to 25 per cent.
The US is also asking China to ensure compliance with its intellectual property rights in respect of American technology and services.