Breaking: Trump announces "substantial phase one deal" with China


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. 

Streaming comments: 

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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