In an interview with CNBC late-Friday, White House economic adviser Larry Kudlow shared key insights on the US-China Phase One trade deal agreed.
It should take place "inside of a few weeks".
Hopefully we will be resolving some of the unfair trade practices.
There is an enforcement process embodied in this phase one agreement, if a complaint is involved it will go to staff, then deputies, then principles. If it's not resolvable action will be taken.
Phase Two starts immediately.
There's a section in the IP area on counterfeit goods.
There's a section that prohibits technology transfers.
Agricultural purchases in $40-$50B range is over a two-year period.
Meanwhile, CNBC’s Kayla Tausche reported the key comments on the trade deal by the US Trade Representative Lighthizer.
86 page deal would be signed by ministers in Washington, not Pres. Trump and Pres. Xi.
No new tariffs will be put into place as long as 2 parties are abiding by that agreement in good faith.
The purchases portion is about $200 billion of purchases from China. Would include agricultural, manufacturing, and energy products.
China will purchase $40 billion of agriculture and work toward buying $50 billion.
Expects Phase 2 negotiations to begin immediately. Will not wait until elections to start phase 2.
Keeping amount of specific goods private.
There will be a fact sheet released today with more details of the deal.
The official deal is expected to be made public sometime over the next couple weeks.
The Wall Street indices jolted higher in an initial reaction to the Phase One trade deal reached but quickly gave in the gains and finished the day flat, as the details of the deal appeared to disappoint the markets.
On Monday’s Asian open, the market mood is likely to remain elated amid trade and Brexit optimism. “Prime Minister Boris Johnson called on Friday for “closure” over the Brexit divisions that have driven the United Kingdom, saying his election victory provided an overwhelming mandate to take Britain out of the European Union on Jan. 31”, per Reuters.
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