The US and China signed a historic trade agreement: what you need to know

The United States and China on Wednesday after a long 13 rounds of talks reached agreement and signed the first package of documents under the trade agreements. The document in Washington was signed by the President of the United States Donald trump, from China the document was signed by Vice-Premier of China Liu he, writes RIA Novosti.

США и Китай подписали историческое торговое соглашение: что нужно знать

Photo: a video frame twitter.com/WhiteHouse

Broadcast the signing ceremony was led by Twitter of the White house.

What we know about this document?

Trade and agricultural products

Under the terms of the first phase of the transaction, Beijing in the next two years, agreed to buy American goods at $200 billion, writes TASS. However, about $40-50 billion, China will have to spend on American agricultural products, which is almost two times more than in 2017 ($24 billion). The exact product is still unknown, but we can talk about increase in import of wheat, rice, corn. As reported by the TV channel СNBC, Beijing fears that such a sharp increase in purchases of agricultural products the United States may have a negative impact on relations with other trading partners of China. In addition, the China take into account the risk that Donald trump, despite the conclusion of the transaction, may still impose new duties.

The intellectual property

This item provides for increased legal protection of patents, trademarks, copyrights, improvement of criminal and civil procedure of the PRC for combating Internet infringements, pirated and counterfeit goods, including pharmaceuticals. Washington has repeatedly accused China of stealing American technology and appropriation of intellectual property.

Technology transfer

China should stop pressuring foreign companies not to force them to transfer their technology to Chinese firms in exchange for access to the Chinese market. Washington calls this practice of economic aggression. Moreover, Beijing undertakes to ensure transparency and fair judicial review of these cases and the transfer of technology on market conditions. According to the American Trade mission, China agreed to refrain from direct investment, acquisition of foreign technology for the performance of its industrial plans.

США и Китай подписали историческое торговое соглашение: что нужно знать

Photo: a video frame twitter.com/WhiteHouse

Exchange agreement

This agreement contains the obligations of China to refrain from competitive devaluation of currencies and not to use its exchange rate to obtain a trading edge. According to the American side, such an approach will contribute to strengthening macroeconomic stability and will not allow China to use currency manipulation for unfair competition with American exporters.

Settlement of disputes

The paragraph provides a mechanism that allows parties to resolve disputes fairly and expeditiously. The agreement provides for regular bilateral consultations at various levels. It also establishes strict procedures for the settlement of disputes relating to the agreement, and allows each side to take proportionate retaliatory measures that it considers appropriate.

США и Китай подписали историческое торговое соглашение: что нужно знать

Photo: a video frame twitter.com/WhiteHouse

The signed document was published by Fox Business.

In the framework of negotiations on the second phase of the transaction is expected to discuss the withdrawal and the remaining duties. That the United States will maintain the fee at the rate of 25% on Chinese goods in the amount of about $ 250 billion, along with 7.5% on goods worth $120 billion, reported in connection with the conclusion of the first phase of a trade agreement between Beijing and Washington, U.S. trade representative Robert Lighthizer. However, trump noted that the removal of these restrictions will be the trump card in the negotiations on the second phase of the transaction. The American administration is ready to impose new duties in case of violation by China of the conditions of trade deal in its first phase. Provides “a concrete implementation mechanism” that will be regulated by, including, and secret documents.