US Trade Rep. Lighthizer on historic 'phase-one' China trade deal
United States trade representative Robert Lighthizer discusses the historic 'phase one' of the U.S.-China trade deal that is expected to be signed on Wednesday.
The COVID-19 outbreak could affect the China-U-S trade deal. 'Phase One' is now in effect.It's unclear when new negotiations will start, with so many resources now dedicated to fighting disease. CGTN's Owen Fairclough reports. As the Senate readied the passage of the $2 trillion stimulus package, Sen. Bernie Sanders slammed Republicans' stances on issues like unemployment benefits and money for corporations. After more than two years of escalating tarrifs and a seemingly never-ending trade war, the US and China have agreed on a first step towards a truce.
If it holds, it could be a boost for U.S. President Donald Trump in an election year.
But who will benefit the most from this initial phase of a broader trade agreement?
China has promised to open up its markets and buy more US goods.
In exchange, the US will lift some tarrifs. Yet most will stay in place - and that's where the problems start.
So, could this really be the beginning of the end of the trade war between the US and China?
Presenter: Richelle Carey
Dan Wang, analyst for the Economist Intelligence Unit's Access China Service.
Hosuk Lee-Makiyama, Director of the European Centre for International Political Economy and a former Swedish Representative to the World Trade Organization.
Phil Caruso, Member of the Defense Council at the Truman National Security Project and a former Intelligence officer in the US Air Force. Italy has reported its highest number of coronavirus-related deaths in one day, with 919 deaths announced on Friday.
BALANCE AMERICA'S TRADE RELATIONSHIP WITH THE ENTIRE WORLD. AMBASSADOR LIGHTHIZER AND TREASURY SECRETARY STEVE MNUCHIN, THE PRESIDENT'S LEAD NEGOTIATORS. AMBASSADOR LIGHTHIZER JOINING US ON WHAT HIS LATEST IN THE CHINA TRADE DEAL. >> I HAVE THE DEAL RIGHT HERE. THE AGREEMENT IS RIGHT HERE. THIS IS THE ENGLISH VERSION. WE ARE ABOUT FINISHED WITH THE TRANSLATION. IT ALWAYS TAKES TIME. YOU ARE THE FIRST TO SIGHT. THIS IS THE AGREEMENT. WE ARE GOING TO MAKE IT PUBLIC WEDNESDAY BEFORE THE SIGNING. THAT'S A DECISION WE WANT TO MAKE. BUT WE HAVE GIVEN A LOT OF PEOPLE BRIEFINGS. A LOT OF PEOPLE KNOW WHAT'S IN IT. LOU: CHINA IS NO LONGER A CURRENCY MANIPULATOR AS A PRECONDITION TO THE DEAL, I ASSUME. THE IMPACT OF THAT DECISION AS YOU MOVE FORWARD WITH PHASE ONE? >> I WOULD SAY IN THIS AGREEMENT THERE ARE A VARIETY OF REAL STRUCTURAL CHANGES. ONE OF THOSE IS COMMITMENTS ON CURRENCY. NOT TO BE -- NOT TO MANIPULATE YOUR CURRENCY. AND ALSO CERTAIN TRANSPARENCIES. WE HAVE AN ENFORCEABLE COMMITMENT ON THIS CURRENCY AGREEMENT. I THINK THAT'S THE REASON THE SECRETARY DECIDED IT WAS NOT NECESSARY TO HAVE THEM BE A CURRENCY MANIPULATOR. >> OBVIOUSLY YOU WILL BE ABLE TO GET PRETTY CLEAR INFORMATION ON WHETHER THEY BREAK THAT DEAL BY SIMPLY WATCHING THEM IN THE MARKET. THE SECOND PART OF THE MARKET WHERE THERE ARE TRIP WIRES HERE IS IF THEY CONTINUE TO STEAL U.S. INTELLECTUAL PROPERTY, IF THEY CARRY OUT CYBER ATTACKS, THAT IS VISIBLE, IT'S A TRIP WIRE. WHAT WILL BE THE U.S. RESPONSE AND OVER WHAT PERIOD OF TIME WILL IT BE REQUIRED OF THE CHAIN EATS TO DEMONSTRATE THEY ARE IN FULL COME -- OF THE CHINESE TO DEMONSTRATE THEY ARE IN FULL COMPLIANCE. >> IF I CAN PUT THIS? CONTEXT. WE BELIEVE THAT WE HAVE A SERIOUS PROBLEM WITH CHINA. BOTH AN IMBALANCED ECONOMIC RIM, 450ER. >> 450 OR MORE IN UNBALANCED DEFICIT. THEM PRACTICES LIKE CYBER ATTACKS AND THE LIKE. THE PRESIDENT HAS BEEN TALKING ABOUT THIS FOR AT LEAST 30 YEARS. HE HAS BEEN TALKING ABOUT IT FORKING A LONG LONG TIME, SO HE DECIDED TO TACKLE IT. YOU TRY TO DECOUPLE THE ECONOMIES. THAT PROBABLY IS NOT PRACTICAL. OR YOU TRY TO WRITE RULES THAT WORK FOR THE UNITED STATES AND BENEFIT THE UNITED STATES. THAT'S WHAT THE PRESIDENT DECIDED TO DO. HE DECIDE TO DO IT WHERE YOU CAN GET DONE WHAT YOU NEED TO GET DONE. THIS DEAL HAS REAL STRUCTURAL CHANGE. IT HAS SUBSTANTIAL PURCHASES AND IT'S COMPLETELY ENFORCEABLE. AND WE MAINTAIN $350 BILLION WORTH OF TARIFFS ON IMPORTANT PRODUCTS. ACROSS THE BOARD IT'S A GOOD DEAL FOR THE UNITED STATES AND IT WILL WORK IF REFORMERS IN CHINA WANT IT TO WORK. FIT HAPPENS, GREAT. IF IT DOESN'T HAPPEN, IT'S FULLY ENFORCEABLE. THERE ARE OTHER PROBLEMS WITH CHINA AND WE'LL TAKE ON THOSE IN PHASE TWO AND THREE. THE BIGGEST THING TO ME IS TO GET A BIG DEAL GOING. THERE ARE A LOT OF WAYS YOU CAN TELL WHAT THEY ARE DOING. THE PURCHASING IS EASY TO ENFORCE. THE CURRENT I HAVE WE TALKED ABOUT -- THE CURRENCY WE HAVE TALKED ABOUT. THEY ARE LIVING UP TO THEIR ASK ASK PROMISES ON IP AND AGRICULTURE STANDARDS AND THE LIKE. THIS IS SOMETHING WE HAVE TO MONITOR. I'M NOT POLLYANNA ABOUT THIS. WE EXPECT THEM TO LIVE UP TO THE LETTER OF THE LAW. AND WE'LL BRING CASE AGAINST THEM IF THEY DON'T. BUT THIS IS A BIG AGREEMENT AND A HUGE STEP FORWARD. LOU: AND YOU ARE GETTING SOME COUNSEL FROM THE CHAMBER OF COMMERCE ABOUT WHAT YOU CAN DO TO IMPROVE THIS. THIS WOULD BE YOU EMANATING FROM THE SAME COUNCIL THAT HAS BEEN INVOLVED IN THIS MESS. >> THERE IS AN EXPRESSION THAT NOTHING IS IMPOSSIBLE FOR THE MAN WHO DOES HAVEN'T TO DO IT. THE GREAT TEDDY ROOSEVELT'S QUOTE ABOUT THE CRITIC. THE CRITIC IS NOT THE PERSON WHO ENDS UP GETTING THE CREDIT. IT'S THE PERSON WHO IS ACTUALLY IN THE FIGHT. THE PRESIDENT IS IN THE FIGHT. HE'S THE ONE WHO IS STANDING UP AND REALLY FOR THE FIRST TIME EVER. THIS IS NOT A NEW PROBLEM. IT'S OBAMA, IT'S GEORGE W. BUSH, AND IT WAS IN MANY PLACES MADE MASSIVELY WORSE IN THE CLINTON ADMINISTRATION. HE SINGLE PERSON SAID THEY WOULD TAKE IT ON. AND THIS IS THE FIRST PRESIDENT WHO HAS DONE IT. I THINK THE PRESIDENT HAS A VISION, HE HAS US WORKING HARD ON IT, AND WE HAVE A HUGE STEP FORWARD. LOU: CONGRATULATIONS TO YOU. SECRETARY MNUCHIN AND PRESIDENT TRUMP WHO AS YOU CORRECTLY STATED HAS BEEN WORKING ON THIS ISSUE FOR A VERY LONG TIME AND IS BACKING UP EXACTLY WHAT HE SAID. JUST AS AN OBSERVER OF ALL OF THIS, AMBASSADOR. WHAT FUN IT HAS BEEN TO WATCH THE SO-CALLED ORTHODOXY, THE PURVEYORS OF THE STATUS QUO WHO SINGING HANDEDLY D WHO SINGLE -- WHO SINGLE HANDEDLY TRIED TO STOP THIS PRESIDENT. WITH TARIFFS THEY SAID WOULDN'T WORK AND THEY WOULD DESTROY MARKETS AND THE ECONOMY. HISTORIC GROWTH, HISTORIC