Yesterday, the trucking industry received a much-needed jolt to kick off 2020. The United States and China signed a trade agreement that is expected to create a boost in U.S. manufacturing and an increase in the number of exported American goods. While this deal will not completely mend the transportation industry after a historically turbulent 2019, it does provide a solid base from where negotiations can continue. Vice Premier Liu He filled in for Chinese leader Xi Jinping at the meeting, reading a letter to President Trump from Jinping stating, “the first phase is good for China, the U.S. and the whole world.”
The specifics of the agreement include the U.S. rolling back some of their tariffs on Chinese imports while China agrees to increase their purchases of American farm products as well as airplanes, pharmaceuticals, and oil and gas. The New York Times reports that, “China has committed to buy an additional $200 billion of these American goods and services by 2021 and to crack down on business practices criticized by the Trump administration. In return, the U.S. agreed to not impose tariffs on an additional $160 billion of Chinese imports, while also cutting current tariffs in half to 7.5% on $110 billion of existing Chinese goods.”
With the ink still wet on this deal, there are many who raise concerns on how both parties of the agreement can be held accountable. Unlike trade deals in the past that defer disputes to a neutral 3rd party, the U.S. and China agreed that any issues will be sorted out amongst themselves. The New York Times also reports, “this type of problem solving creates something called the Bilateral Evaluation and Dispute Resolution Offices. The sole purpose of this group is to receive and evaluate complaints and initiate an appeals process that can reach the top levels of government if necessary.”
https://www.nytimes.com/2020/01/15/business/economy/china-trade-deal-text.html
https://www.trucking.org/article/Trucking-Industry-Hails-U.S.-China-Trade-Pact
https://www.ttnews.com/articles/us-china-sign-deal-aims-simmer-long-running-trade-tensions
