Daily Management Review

US, China Could Announce A Trade Deal In Early May: Reports


According to media reports that painted a rosy picture for the trade talks between the United States and China, both the parties are trying to reach a deal by early-May and hence they are scheduling more face-to-face meetings between the trade representatives of the two countries. If a deal is reached, it would be ratified at a summit between the US president Donald Trump and Chinese President Xi Jinping later that month.
According to reports quoting sources, there are plans for U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin of going to Beijing for talks during the week starting April 29. That would be followed by a Washington visit by the Chinese Vice Premier Liu He for trade talks. According to report, both the sides want to make a formal announcement of of hiving arrived at a trade deal during the visit of Liu He.
At the beginning of the moth, Trump had said that getting together a framework for the deal could get completed within four weeks time and it would take another couple of weeks to prepare a hard copy of the deal. And on Wednesday Trump said expressed his optimism about the success of the trade negotiations and that an update on it would be made shortly. He was speaking at an event at the White House when he made those comments.
Negotiations on trade has been going on for quite a few months between the two largest economies of the world even though they are also locked in a pitched trade war for more than nine months now.
The two sides are nearing the final rounds of negotiations, Mnuchin said on Saturday.
Since the last visit of Chinese trade officials to the US in early April, representatives from both sides have kept regular contact with each other through digital teleconferences. According to reports, an enforcement mechanism and what duties will stay in place or be removed are currently the two major sticking points in the negotiations.
All possible concessions that are necessary to come to a trade agreement being made by the US, the Trump administration had indicated earlier with Mnuchin saying that any deal would have “real enforcement on both sides.” This could mean that it not only China – but even the US could be imposed penalties if it does not follow up on its commitments.
A news report in Bloomberg on Monday claimed that a request from the US about shifting some of the retaliatory tariffs imposed in its goods by China to be shifted from agriculture goods to other products is being considered by Beijing. According to sources quoted in the report, the reason or this request is that the Trump administration wants to project the deal as a win for U.S. farmers.
The two sides are also considering whether the signing summit of the two leaders from the two countries could be held in Japan. Trump is due to visit Japan in May to pay a visit the new emperor of the country, Crown Prince Naruhito.