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Money Canadian farmers left with more questions after U.S. and China sign long-awaited trade deal

08:05  16 january  2020
08:05  16 january  2020 Source:   financialpost.com

Trump says China trade deal may be signed shortly after January 15

  Trump says China trade deal may be signed shortly after January 15 Trump says China trade deal may be signed shortly after January 15In an interview with the ABC TV affiliate in Toledo, Ohio, Trump said: "We're going to be signing on January 15th - I think it will be January 15th, but shortly thereafter, but I think January 15th - a big deal with China.

President Trump’ s long - awaited trade deal with China includes some significant changes to the economic Although American businesses and farmers will be pleased by those commitments, China is only The shopping list also leaves several open questions : What happens to China ’ s existing

The agreement is expected to include significant concessions to protect U . S . technology and trade Administration officials say the tariff threat gives the deal more teeth than previous pacts with China . Text of the trade deal has not been made public in either English or Chinese . It appears to include

a couple of people standing next to a person in a suit and tie: U.S. President Donald Trump with Chinese Vice Premier Liu He during a signing ceremony for Phase 1 of the U.S.-China trade agreement in the White House, Jan. 15, 2020. © Kevin Lamarque/Reuters U.S. President Donald Trump with Chinese Vice Premier Liu He during a signing ceremony for Phase 1 of the U.S.-China trade agreement in the White House, Jan. 15, 2020.

The newly signed U.S.-China trade deal that includes a significant boost in Chinese purchases of American products has calmed global trade tensions for now, but leaves a number of crucial questions unanswered for Canadian exporters.

At a signing ceremony in Washington Wednesday, President Donald Trump touted the deal between the world’s two biggest economic powers as a “landmark” agreement that most people “thought could never happen,” — though analysts said it leaves a number of core structural issues unresolved.

Oil drops on concerns that U.S.-China trade deal may not stoke demand

  Oil drops on concerns that U.S.-China trade deal may not stoke demand Oil drops on concerns that U.S.-China trade deal may not stoke demandSINGAPORE (Reuters) - Oil prices slipped on Wednesday on concerns that the pending Phase 1 trade deal between the United States and China, the world's biggest oil users, may not boost demand as the U.S. intends to keep tariffs on Chinese goods until a second phase.

Trade deal , Medvedev, impeachment: Here’ s what you need to know. Good morning. We’re covering the initial trade deal between the U . S . and China , why the Russian prime minister and his cabinet resigned, and how some men in Japan are challenging a rigid work culture by taking parental leave .

More from NBC. President Donald Trump and China ' s Vice Premier Liu He signed phase one of a hard-fought trade deal on Wednesday, capping a bitter 18-month battle between Wall Street cheered the long - awaited deal , with the Dow Jones Industrial Average rising by almost 200 points midday

“Together, we are righting the wrongs of the past and delivering a future of economic justice and security for American workers, farmers and families,” Trump said at a White House press conference that included top Chinese officials.

Chinese vice-premier Liu He, who read a letter from Chinese president Xi Jinping, cited the deal as an example of how the two countries could resolve issues through dialogue and “mutual respect.”

The pact “is good for China, for the U.S. and for the whole world,” Liu said through an interpreter.

Trump could still slap tariffs on China after signing 'phase one' trade deal, expert warns

  Trump could still slap tariffs on China after signing 'phase one' trade deal, expert warns China would have to buy a "crazy amount" of U.S. goods and services to fulfill its commitments in the deal, said Deborah Elms, executive director of Asian Trade Centre.That's especially the case when the deal — expected to be signed in Washington on Wednesday — would involve Beijingincreasing its imports of U.S. goods and services by at least $200 billion over two years, said Deborah Elms, executive director at consultancy Asian Trade Centre.

The United States and China signed an initial trade deal on Wednesday that will roll back some tariffs and boost Chinese purchases of U . S . products, defusing an 18-month row between the world' s two largest economies but leaving a number of sore spots unresolved. Beijing and Washington touted the.

US - China 'phase one' trade deal is on the surface: Former US ambassador to China . President Donald Trump and China ' s chief trade negotiator, Liu He, signed a modest agreement Wednesday Beijing’ s retaliatory tariffs affect more than half of American exports to China . The average U . S . tariff

The world is now at a critical crossroads in which it must make a strategic choice about its way forward, Liu said, adding he hoped the initial deal would help build trust between the two countries. “Cooperation is the only right choice.”

In a deal that Washington has described as the first phase of a more comprehensive pact, Beijing committed to buying an additional US$200 billion in American goods over the next two years, including US$40 billion to US$50 billion in agricultural products.

China also pledged to tighten its rules on intellectual property protection, pirated goods and theft of commercial property and to take steps to allow companies to operate within its vast market without any pressure to transfer their technology. The pact also calls on Beijing to avoid currency manipulation and to open its $40 trillion financial services sector to U.S. companies.

U.S. and China reset trade relationship with a new deal

  U.S. and China reset trade relationship with a new deal U.S. and China reset trade relationship with a new dealBeijing and Washington have portrayed their phase-one agreement as a momentous step after months of start-stop talks punctuated by tit-for-tat tariffs that uprooted supply chains and stoked fears of a further slowdown in the global economy.

Xi' s absence left some with the impression that Washington wants the deal more than Beijing does. China - US trade has diminished in both directions since Trump began venting about an imbalance of U . S . farmers were hit hard by the tariff war—notably on soybeans which saw exports to China plunge

The U . S . and China signed the first part of their long - awaited trade agreement on Wednesday. But with the deal largely priced into markets, the dollar was largely unmoved We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other.

However, it does little to address subsidies or China’s system of state-owned enterprises, which have been blamed for creating an unfair global playing field. Officials have said those issues will be taken up in “Phase 2” of the talks though it is unclear when those will begin.

Crucially, though the deal includes a long list of U.S. products that will benefit from China’s US$200 billion purchase commitment, it does not include quantities. Soybeans, fresh and frozen pork, beef, wheat, corn, barley and a range of machinery are among the goods listed.

That’s a concern for Canadian exporters, particularly agricultural exporters who have found themselves caught in the dramatic upheaval of trade patterns caused by the U.S.-China trade dispute. Canadian exports of wheat to China, for instance, rose to 2 million tonnes in 2019, a threefold increase over normal levels posted in the years prior to the trade dispute, said Cam Dahl, president of Cereals Canada.

A cooling off of the trade disagreement between the US and China, combined with the Chinese pledge to buy an undisclosed quantity of U.S. wheat, could see much of that demand lost, Dahl said. What’s more, it remains unclear how the deal will comply with World Trade Organization rules that preclude discrimination against some markets in favour of others, unless a full free trade agreement is forged. The U.S.-China deal covers only a limited range of goods.

EU warns of WTO challenge if China-US deal creates 'distortions'

  EU warns of WTO challenge if China-US deal creates 'distortions' The European Union will challenge the China-US trade agreement at the World Trade Organization if it creates "distortions" in the market that harm EU companies, the bloc's envoy to Beijing said Friday. Ambassador Nicolas Chapuis told reporters the 28-nation EU "will monitor the implementation" of the "phase one" deal that was signed on Wednesday by President Donald Trump and Chinese Vice Premier Liu He. "In our opinion, quantitative targets are not WTO-compatible if they lead to trade distortions," Chapuis said. "If it were to be the case, we will go to the WTO to settle this matter.

The United States and China signed an initial trade pact Wednesday, easing tensions between the world' s two largest economies. The arrangement means that China is supposed to buy billion a year in U . S . farm exports. Dow, S &P 500 end at records as US and China sign long - awaited deal .

Soybean futures sank after Liu' s remarks, a sign that farmers and traders were dubious about the purchase goals. The deal does not end retaliatory tariffs "While markets seemed to take this deal as a risk-on signal, we should all be aware that headlines about trade , particularly U . S . China trade , are

Mike Pence, Donald Trump posing for the camera:  U.S. President Donald Trump and Chinese Vice Premier Liu He hold up signed agreements of Phase 1 of a trade deal between the U.S. and China in the White House, on Jan. 15, 2020. © Mark Wilson/Getty Images U.S. President Donald Trump and Chinese Vice Premier Liu He hold up signed agreements of Phase 1 of a trade deal between the U.S. and China in the White House, on Jan. 15, 2020.

“This probably falls into the category of managed trade rather than free trade,” Dahl said. “And I think the questions about WTO compliance are still very much out there.”

Both Liu and U.S. Trade Representative Robert Lighthizer have said the pact meets the standards of the world’s trade referee and the deal itself includes a number of pledges to abide by China’s WTO commitments.

“They must have something in mind that will increase the purchase of U.S. products without affecting everybody else,” said Simon Lester, a trade policy analyst at Washington’s Cato Institute. “But we just don’t understand exactly how China will implement this. We’ll have to watch and see over the next year for what China increases purchases of and how it affects competitors like Canada.”

Other Chinese buying commitments include $54 billion in additional energy purchases, $78 billion in additional manufacturing purchases, $32 billion more in farm products, and $38 billion in services.

The deal falls short of a return to normal tariff rates predating the trade war – which has seen the U.S. apply tariffs to nearly two-thirds of Chinese imports while Beijing imposed levies on more than half of all U.S. goods.

Trade pact will slow Canadian lobster sales to China, says expert

  Trade pact will slow Canadian lobster sales to China, says expert Even though a new U.S.-China trade agreement does not eliminate heavy Chinese tariffs, the deal will still result in a loss of Canadian seafood sales to China, according to an expert.Canadian live lobster exports to China, mostly from Nova Scotia, soared after China slapped retaliatory tariffs of 35 per cent on U.S. lobsters.

On Wednesday, Mr. Trump will sign an initial trade agreement with Beijing that will help cool tensions between the China agreed to enforce stronger protections for American intellectual property, open its markets to American financial “That’ s the billion-dollar question , will China live up to its promise?”

U . S . President Donald Trump stands Chinese Vice Premier Liu He after signing "phase one" of the U . S The easing of US - China trade frictions has boosted stock markets worldwide in recent weeks, as it takes But many economists question whether US farmers have the capacity to meet that demand.

U.S. tariffs on US$120 billion of Chinese goods will fall to 7.5 per cent from 15 per cent. However, levies of 25 per cent remain on another US$250 billion in Chinese imports. The cost of those tariffs is being borne entirely by U.S. consumers and companies – and has forced firms to cope with disrupted supply chains and operations. The impact on Chinese tariffs is unclear.

And though any de-escalation of trade tensions is welcome, just how long the peace will last is uncertain, Lester said. Disputes between two countries are to be settled through consultation rather than being resolved by a neutral panel. That could lead to more tariffs being imposed, if one country is dissatisfied, said Patrick Leblond, an associate professor in international affairs at the University of Ottawa.

“We’re just back to square one,” Leblond said.

Meanwhile, the relative calm in the dispute has raised hopes that Canada’s concerns with China might receive more attention from Beijing. But Leblond believes that is unlikely. Two Canadians, Michael Kovrig and Michael Spavor, have been detained for more than a year in apparent retaliation for Canada’s arrest of Huawei executive Meng Wanzhou, on a U.S. extradition request. China has also cut off all purchases of Canadian canola.

In an interview with the French-language TV network TVA in December, Prime Minister Justin Trudeau said he had asked the Trump administration to use the trade talks with Beijing as leverage to win the release of the two Canadians.

“The only thing that would have helped with that is if Trump had linked the two things together,” said Leblond. “So I would think it doesn’t matter.”

IMF hoping for a 'more comprehensive' US-China deal as the months go by .
The IMF is hoping that China and the United States will reach a broader trade agreement in the coming months.The International Monetary Fund (IMF) is hoping that China and the United States will reach a broader trade agreement in the coming months, despite the recent signing of their "phase one" deal.

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