Daily Management Review

Enforcement Of A Trade Deal The Sticking Point For US China Trade Agreement


04/29/2019




Enforcement Of A Trade Deal The Sticking Point For US China Trade Agreement
The enforcement mechanisms that would guide the implementation of a trade agreement between the United States and China is pivot that a trade pact that would end the trade war between the largest two economies of the world.
 
US negotiators are set to visit China to iron out the various pending issues of the trade deal and the enforcement mechanism is part of that. After this week’s Beijing visit by U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, another round of face to face negotiations would be held between the two parties in Washington with Chinese Vice Premier Liu He leading the Chinese trade delegation.
 
According to reports and statements made by both sides, talks on issues such as intellectual property and forced technology transfer have been positive and progress has been made. A trade deal between the two countries would not only bring an end to the trade war which saw it-for-tat tariffs from both sides on each others’ goods worth billions of dollars, it would also shape the trade relations between them for years to come. The trade war has also significantly disrupted the global supply chains of multinational companies and has kept he global financial markets on edge for a long time now.
 
While those of the sticky issues between the countries such as intellectual property theft and forces transfer of technology are yet to be completely resolved but, the issues of a mutually acceptable enforcement mechanism to guide the trade deal and the ultimate lifting tariffs are currently the most contentious issues in the trade talks between the US and China
 
Analysts say that while it is possible for both parties to come to an agreement about the mechanism for a trade deal, it is more important to ensure that it is implemented appropriately between the two countries whose relationship is clouded by growing mistrust and geopolitical tensions.
 
“An effective enforcement mechanism will define the deal,” Tim Stratford, chairman of the American Chamber of Commerce in China (AmCham), told the media. “The deal doesn’t need to revamp China’s economy. But it does need to provide a new methodology for dealing with our differences,” said Stratford, a lawyer and former assistant U.S. Trade Representative who has worked in China for more than three decades,” he said.
 
“This is incredibly high stakes. We have a particular window of opportunity, and a lot in the future of U.S.-China relations rests on this,” he added.
 
US and China has decided to the establishment of new “enforcement offices” to oversee the implementation of an agreement, said new “enforcement offices” to police an agreement earlier this month. However no details were divulged by him. Talks are entering a critical point: “We’re getting into the final laps”, he told the New York Times on Sunday. 
 
The positivity of the two countries being able to arrive at a deal in about four weeks was expressed by the U.S. President Donald Trump on April 4. And to further that comments, Trump said last Thursday that a the Chinese President Xi Jinping would be hosted at the White House soon  - which is seen by many as a necessary meeting between the two leaders to cement the deal.
 
(Source:www.wallstreetreporter.com)






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