The US has come to a "substantial phase one deal” with China in trade negotiations, President, Donald Trump, just announced. This agreement will delay a tariff increase scheduled for next week. US Treasury Secretary, Steven Mnuchin, and Robert Lighthizer – a top trade negotiator – also made some comments on the matter.
Trump: Have come to substantial phase one deal with China.
- The agreement is a ‘big deal’; It is better to do deal in ‘sections or phases’.
- We have mode progress on tech transfer, more on that in phase 2.
- Also agreed on currency and FX issues.
- Structural AG issues have also been addressed.
- China has agreed to make 40-50bln USD in AG good purchases.
- Will take up to 5 weeks to get deal written.
- Have come to deal on intellectual property, financial services and big AG purchases.
- The currency deal will be of tremendous benefit.
- We are very close to ending trade war.
- To do a formal signing with Chinese pres. Xi
- Signing could happen at APEC Chile 2019 (Nov 16-17).
- Not expecting deal to fall apart over next few weeks, ‘though there is a possibility’ it will.
- Phase 2 of deal to include some IP aspects.
- Discussed Hong Kong.
- Things have toned down there and he thinks that’s going to take care of itself.
- We will look at the blacklist and what companies should be on it.
- Fed should cut rates despite this deal.
- Little doubt that we will be able to finalize this deal.
US Treasury Secretary Mnuchin: We also have almost complete agreement on financial services.
- Have agreement on transparency in FX.
- There may be a Phase Three if we can't get everything done in Phase Two.
- President has approved not implementing Tues tariffs.
- Have a fundamental understanding on the key issues but there is more work to do.
- US will not sign an agreement until it is on paper.
- China’s Liu has to go back and ‘do more work in China’.
- To evaluate whether to rescind China’s FX manipulation designation.
Chinese Vice Premier Liu: making a lot of progress towards a positive direction in US-China economic relationship
- ‘Substantial progress’ made in many fields, to continue to make efforts.
Lighthizer: Not dealing with Huawei in this agreement.
- Trump has not made a decision about Dec tariffs.
- Have only suspended tariffs scheduled for Tuesday 15th Oct.
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