US-China Sign First Phase of Trade Peace Agreement
Washington, MINA – After about two years of trade war, the United States and China finally signed a first phase of trade peace agreement on Wednesday.
The US President Donald Trump and Chinese Deputy Prime Minister Liu He signed the peace deal at a meeting at the White House.
As quoted from CNNIndonesia, in one of the points in the agreement, China agreed to buy goods from the US worth at least US $ 200 billion.
The agreement was an additional US $ 32 billion for the purchase of agricultural and seafood products, nearly US $ 78 billion for manufactured goods such as aircraft, machinery and steel, as well as US $ 52 billion for energy products.
To reach the value of the agreement, China and the US set targets every year. For factory products, for example, China must achieve a purchase target of US $ 32.9 in the first year and US $ 44.8 billion in the following year.
Meanwhile, at the agriculture post, the target was set at US $ 12.5 billion in the first year and continued with US $ 19.5 billion.
In the energy sector, the first year target is set at US $ 18.5 billion, and then US $ 33.9 billion. In the service sector, targets are set at US $ 12.8 billion and US $ 25.1.
Even though, the phase I agreement has been signed, the US will still impose tariffs on imported goods from China until there is a phase II agreement.
However, the US agreed to suspend tariffs on a number of electronic products worth US $ 160 billion US dollars. Originally, the rate was valid on December 15, 2019 ago.
The phase I agreement is expected to be a good start after the two countries are involved in a trade war that also dragged the global economy.
Based on the latest data, the negative effect of trade war on the competitiveness and manufacturing industry of America is deeper and longer than previously estimated.
The US companies have reportedly paid US $ 46 billion in tariffs since Donald Trump’s Preside began restructuring relations with almost all of Washington’s major trading partners. (T/Sj)
Mi’raj News Agency (MINA)
