Wednesday is going to be a historic day for the US and China as they get ready to sign what is known as Phase 1 in the trade agreement between the two countries. One of the most contentious issues that had this agreement taking so long to negotiate is getting China to agree to the enforcement mechanisms that Robert Lighthizer has crafted into the MOU’s wording. Now that both sides finally came to a understanding what the rules are, the MOU’s are now going into be made into an official trade agreement document that both countries will sign onto. This agreement will be made available (English version) to the public as soon it is signed and official.
Below Sundance from CTH shares his views on what Lighthizer means to this outstanding economic team and how under appreciated he truly is for taking on and dealing with this very complicated issue of trade with China.
U.S. Trade Representative Robert Lighthizer is a smart, serious and deliberate professional on a very specific and important mission for the United States. In my opinion Lighthizer is the most under-appreciated member of an exceptionally good economic team. Everything about Lighthizer’s approach is based on enforcement.
Ambassador Lighthizer has been consistent over multiple years, on his intention to create enforceable trade reform between the U.S. and China, or, if needed, decouple the two economies if China fails to accept the necessary structural reforms.
Tonight, as the Chinese delegation arrives, Lighthizer discusses the U.S-China ‘phase-one’ agreement with Lou Dobbs.
Here is what China agreed to purchase from the US in the newly signed trade agreement with the US.
"Earlier today President Trump, together with his trade delegation and the delegation from China represented by Vice-Premier Liu He, signed a new, fully-enforceable Phase One Trade Agreement. This is the first ever trade agreement any nation has attempted to change the dynamic of how a free-market system (USA) can engage with the Communist system within China.
While ‘phase-one‘ was structurally created to set the foundation, and test the principles of enforcement, this historic trade agreement will frame the text that all other free-market nations will follow in their own efforts to come to a substantive agreement with Beijing.
This is a really big deal on a worldwide scale of international commerce. Structurally the biggest changes inside China relate to Intellectual Property protections, U.S. ownership of assets, and changes within the Chinese legal system to stop Forced Technology Transfer.