The International Trade Council is closely monitoring the progress in US-China trade negotiations, as the two countries have reportedly agreed to roll back tariffs as part of any new trade deal. The potential agreement is seen as a significant step towards resolving the ongoing trade dispute that has disrupted the global economy.
Though the deal under discussion is described as a partial, "phase one" agreement, it is unlikely to fully address issues such as technology theft that initiated the conflict. No signing date has been confirmed yet. Originally, a phase one deal was expected to be presented at a gathering of world leaders in Chile before the end of the year, but the country canceled two summits planned for the coming weeks due to domestic protests.
A spokesman for China's Commerce Ministry stated that the two sides had agreed to cancel the tariffs "in stages" as the agreement develops. On Thursday, Reuters and Bloomberg reported that a US trade official had confirmed some tariffs would be lifted, should a deal be reached. However, US negotiators did not publicly endorse the report, and Reuters later reported that the plan faces "fierce" internal opposition.
Stock markets gained on the reports, interpreting them as a sign that a deal is getting closer. The International Monetary Fund estimates that the US-China trade war will shave almost a percentage point off of global growth this year.
The International Trade Council remains committed to fostering a stable and fair global trading environment. We encourage continued dialogue and cooperation between the US and China to reach an agreement that benefits both nations and the global economy.