President Trump`s long-awaited trade deal with China involves significant changes in economic relations between the world`s largest economies. But even the most announced part of the deal – China commits to buying an additional $200 billion in U.S. exports over the next two years – seems precarious. Unrealistic export targets could threaten not only trade peace, but also the trade progress needed to allay legitimate concerns in U.S.-China trade relations. The U.S. Economic and Security Commission of Inquiry, established two decades ago by Congress and appointed by members of both parties, said stagnant trade and consumer demand in China due to the virus “increase the possibility of disruption,” recalling Trump`s efforts to end two years of trade war with Beijing. , which it had begun in 2018. According to former IATP Treasurer Rod Leonard, who served on Secretary Freeman`s staff and wrote a brief political biography of Freeman`s tenure at the USDA, there have been both short-term and long-term crises. One of the Secretary Freeman`s great successes was a three-day agreement negotiated in 1965 with India`s Minister of Agriculture to significantly increase U.S.
food aid, particularly because of the oversupply of American wheat, which is putting pressure on prices, to avoid widespread famine. The agreement also provided for the long-term development of India`s land capacity. One of the heroic failures of Freeman`s tenure was the rejection of Congress by a single supply management voice to the 1961 Farm Bill. In any event in the Senate stimulus package, the inclusion of Senator Hoeven`s proposal is likely because, without CCC filling in, export-dependent agriculture collapses in the absence of proposed agricultural services management for the 2015 Farm Bill. But will $50 billion be enough to compensate farmers for trade-related revenues lost in the trade war, now exacerbated by the re-election tactics of the “Chinese virus”? 8. On the other hand, Chapter 3 on trade in food and agricultural products describes China`s specific commitments to address certain regulatory problems in agricultural trade, including the licensing of American poultry and beef products, which have long been excluded from the Chinese market, despite long-standing concerns over the US outbreak of avian influenza and mad cow disease. Chapter 4 on Financial Services describes China`s specific commitments to improve U.S. exports of electronic payment services (Visa, Mastercard and American Express), banking, rating agencies, financial asset management, insurance, securities, fund management and futures services. Chapters 1 and 2 focus on protecting Chinese intellectual property and dealing with foreign investment. Suddenly, the trade deal, which seemed almost certain, seemed to be back on a shaky ground, as if the heads of state and government Xi Jinping and Donald Trump had dissenting views. People were concerned that last-minute negotiations, like the last time, would collapse. Trump`s first-phase agreement with China was extraordinarily incomplete.
U.S. tariffs on hundreds of billions of dollars of trade are maintained. The agreement did not even touch on major systemic issues behind the trade war, such as Chinese subsidies and state-owned enterprises. A speed she can read in global business news – weekdays in the morning, in your inbox. The real problem with managed trade is that it is more likely to divert international trade than it extends it. China could, for example, buy more U.S. soybeans by reducing imports of oleoacs from Brazil. At the same time, Beijing could choose to import significantly less tens of billions of dollars of U.S. exports that are not covered by the legal agreement.