The United States and China are moving towards the end of their trade war with an agreement that includes the gradual withdrawal of tariffs that both parties have imposed since March 2018, when trade tension was strengthened, which has had global repercussions.
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The Chinese Government noted that both countries They have reached “consensus” after the “extensive, constructive and serious” conversations of the last weeks.
“The two sides have agreed to eliminate tariffs as progress is made. Yes China and the US UU. reach an agreement in the ‘first phase’, both parties should eliminate tariffs simultaneously and in the same proportion, ”said Gao Feng, spokesman for the Chinese Ministry of Commerce.
'President Xi and President Trump will stamp their signatures'
Sources familiar with the Washington talks confirmed that This withdrawal in commercial assessments is part of the “phase one” of the agreement.
It remains to decide where the US president, Donald Trump, and his Chinese counterpart, Xi Jinping, will sign that first part of the pact.
“China and the US UU. they are working to select a new place for the signing of Phase One of the Commercial Agreement, around 60 percent of the total, after Apec, in Chile, was canceled due to unrelated circumstances, ”said Donald Trump in his account from Twitter "The new place will be announced soon. President Xi and President Trump will stamp their signatures"he added.
Record closure on the bag
The markets received information on the elimination of tariffs with optimism. Wall Street closed yesterday in green, with its main index, the Dow Jones, marking a new historical record with an increase of 0.66 percent or 182.24 points, to 27,674.80 points.
Meanwhile, the Nasdaq, which measures the behavior of technology companies, revalued 0.28 percent or 23.89 points, to 8,434.52 points.
The US president described the pact as the "first phase" in a process that can be developed in up to three stages, and He set aside his plans to raise import tariffs for the Asian giant I had scheduled for the end of the year.
For its part, China promised to increase its purchases of US agricultural products to reach between 40,000 and 50,000 million dollars, a figure that, according to Trump, is between “2.5 and 3 times higher” than what Beijing “had bought so far at its peak”, when it touched the 17,000 million dollars.
Neither government has published more details of the agreement so far. However, President Trump said it includes some measures related to the devaluation of the Chinese currency and intellectual property issues, although it will not address the forced transfer of technology in China, an issue that will be discussed "in the second phase."
Breath for the economy
Trade tension between the two largest economies in the world has affected global activity, with special emphasis on international supply chains.
Specifically, the International Monetary Fund (IMF) lowered growth forecasts for both the US in October. UU. like China for this year and next, as well as the prospects for global growth in the face of uncertainty. For this year, the multilateral agency projected that global economic expansion will be only 3 percent, its slowest pace since the 2008 financial crisis.
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