U.S. trade agreement with China
U.S. trade agreement with China
The U.S. Trade Representative (USTR) today announced that the United States and China have reached an agreement on a “Phase One trade deal” that requires structural reforms and other changes to China’s economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, and currency and foreign exchange.
According to the USTR release, the Phase One agreement also includes a commitment by China that it will make “substantial additional purchases of U.S. goods and services” in the coming years. The USTR reported that the agreement establishes a strong dispute resolution system to provide for prompt and effective implementation and enforcement.
In exchange, the United States agreed to modify its Section 301 tariff actions. The United States first imposed tariffs on imports from China based on the findings of the Section 301 investigation on China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation.
The USTR announced that the United States will be maintaining 25% tariffs on approximately $250 billion of Chinese imports, along with 7.5% tariffs on approximately $120 billion of Chinese imports.
For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:
Doug Zuvich |
John L. McLoughlin |
Andy Siciliano |
Steve Brotherton |
Luis (Lou) Abad |
Irina Vaysfeld |
Amie Ahanchian |
Robert Waldrop |
Gisele Belotto |
Christopher Young |
Andy Doornaert |
George Zaharatos |
Jessica Libby |
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