The agreement contains some victories for President Trump, but implementing and implementing the agreement could be difficult. Mr. Trump said his deal was a blessing for farmers, who are among the hardest hit by the trade war. The agreement contains substantial commitments from China on the purchase of agricultural products, aircraft, pharmaceuticals, oil and gas. To date, the U.S. merchandise trade deficit over the previous year has decreased by 16% from the previous year to $321 billion. The deficit will continue to shrink if Beijing meets its commitments to buy significantly more U.S. imports. REALIZING that it is in the interests of both countries for trade to develop and for international standards to be adhered to in order to promote market-based outcomes. The agreement provides the United States with certain benefits in financial services, including electronic payments, securities, fund management and insurance, but many of these changes were already underway. Already in 2017, in its attempt to ease tensions with the Trump administration, China had tried to give foreign companies greater supremacy in its financial sector, and U.S. banks and other companies held majority stakes in Chinese companies. Among the most important issues discussed in the negotiations with China was the question of how to enforce an agreement.
After observing the agreements with China that they did not keep their promises, many U.S. experts and leaders were skeptical that the Trump administration could lead China to meet its commitments. Intellectual property theft was one of the trump administration`s main reasons for starting a confrontation with China. Previous governments have tried to get China to tackle the practice with limited success. Unlike other trade agreements that generally refer disputes to a neutral third party, the United States and China have decided to develop all the problems themselves. The agreement creates bilateral dispute assessment and resolution offices to respond to and assess complaints. The agreement also includes an appeals process that will increase questions from mid-level officials to the offices of the U.S. trade agent and the Chinese vice premier. Derek Scissors, a China expert at the American Enterprise Institute, said the trade war had already given Trump an advantage, even though he didn`t force Beijing to change its economic policy: Trump`s tariffs reduced Chinese exports to the United States and reduced America`s trade deficit with China.
Nevertheless, the Phase 1 agreement did not resolve Washington`s fundamental differences with Beijing, which depends on massive state intervention in the economy to turn China into a technological powerhouse. Wednesday`s partial ceasefire could restore some confidence and Chinese purchases will help some sectors of the U.S. economy, but the pact preserves the bulk of tariffs on $360 billion worth of goods from China. Administration officials have said they will not lift these rights until countries can agree to a phase 2 agreement. Longer tensions in relations could prompt U.S. companies to spend less in China and vice versa. “We mark more than just an agreement. We are marking a change in international trade,” Trump said at a noise ceremony, referring to former FBI Director James Comey, impeachment proceedings and a possible july 4 visit to Mount Rushmore for a fireworks display.