Fox Business Network

Fox Business Network 13 Jan 2020

US Trade Rep. Lighthizer on historic 'phase-one' China trade deal

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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
Guests
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.

… show captions ↓
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

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