USTR Katherine Tai vows to enforce phase 1 deal
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U.S. trade representative Katherine Tai is present before the Senate Appropriations Subcommittee of Commerce, Justice, Science and Related Agencies at a hearing about the budget proposal for fiscal year 2022 to the Office of the U.S.Trade Representative (on Capitol Hill, April 28, 2021, Washington, DC).
Sarah Silbiger | Getty Images News | Getty Images
Washington must enforce the U.S.-China phase one trade agreement and will raise broader policy concerns with Beijing, U.S. Trade Representative Katherine Tai will say on Monday, according to her press office.
“Today, we will present the starting point for our Administration’s Strategic Vision for Realigning Our Trade Policies towards China to Protect the Interests of America’s Workers, Businesses, and Producers, and Strengthen our Middle Class,” said remarks that were prepared for presentation at the Center for Strategic and International Studies.
Tai expects to state that China made promises to benefit specific American industries.
CNBC reported last week that the top trade advisor would announce that Beijing has not complied with the phase one dealThis was achieved under the former president Donald Trump’s administration.
Tai will say that the U.S. is concerned about China’s non-market and state-centered trade practices. This concern was not covered in phase 1.
The prepared remarks state that “As the enforcement of the terms in Phase One continues, we will raise this broader policy concern with Beijing.”
The first phase of the agreement
Beijing committed to buying at least $200B more U.S. services and goods in the 2020-2021 trade deal signed January 2020. This is a significant increase from 2017. This agreement ended a two-year long trade war between the U.S. & China.
As of August however China had only reached 62% of that target, based on U.S. export data compiled by think tank Peterson Institute for International Economics.
According to a top administration official, the U.S. President Joe Biden believed that phase one did not address his concerns regarding China’s trade practices.
During a background phone call, the official indicated that “Unlike his predecessor,” President Biden would hold China responsible for its failures to meet its obligations.
U.S. Trade Rep will state: “We will utilize the entire range of tools that we have, and create new tools as necessary.” defend American economic interests from harmful policies and practices.”
It is expected that she will announce targeted tariff exclusions for companies to avoid punitive levies and engage in “frank discussions” with Chinese counterparts over the next few days.
The background call revealed that U.S. officials stated that Washington would not be seeking negotiations for a second phase of the agreement.
This is important breaking news. Stay tuned for new updates.
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