China Trade Agreement Pandemic Clause

Posted: April 8, 2021 in Uncategorized

“The Phase 1 agreement will set the rules of engagement, even if the pandemic has diminished,” said Jamieson Greer, who until a month ago was chief of staff to Robert Lighthizer, the U.S. Trade Representative, and is now a partner at King and Spalding, a Washington law firm. “In the event that a natural disaster or other unforeseen event beyond the control of the parties prevents a party from fulfilling its obligations under this agreement in a timely manner, the parties consult with each other,” he said. Such a language of force majeure is common in trade agreements, but rarely in trade agreements, especially between two countries with economies so vast that they are essentially immune to local floods and droughts. In addition to endangering public health and public safety, china`s re-election game will most likely result in high trade and investment costs, although White House officials insist that the January 15 agreement be “on track” for implementation. For example, U.S. Trade Representative Robert Lighthizer and Minister Perdue welcomed China`s actions to implement non-tariff measures in the agreement, such as expedited review of marketing applications for genetically modified plants and animals. (Inside U.S. Trade, March 24, 2020. Subscription required.) U.S.

farmers, who depend on payments from the USDA Market Facilitation Program (MFP), are particularly vulnerable to retaliation. This program compensates them in part for the estimated modest incomes due to the impact of Chinese retaliatory duties on U.S. agricultural exports. China has strongly opposed all U.S. demands, which it sees as efforts to interfere in its economy. Negotiators discussed some measures, such as China`s requirement to disclose more information about how it subsidizes its industries, and people familiar with the discussions say such talks are ongoing. But U.S. officials did not mention these issues in the run-up to the original agreement. Chinese experts said Beijing would live up to its commitments, despite a pandemic that negotiators could not predict when the ceasefire was signed in mid-January. Despite the trade war, China remains the largest U.S.

trading partner, worth nearly $740 billion in 2018 alone, meaning China`s economic crisis is likely to re-emerge across the U.S. economy. The current collapse in U.S. net operating income (cash payments plus government payments), z.B. as analyzed by economists at the University of Minnesota Extension Service, dates back to the beginning of China`s four-year customs retaliation. In 2018, the average net operating income in Minnesota was $26,055. In other words, for half of Minnesota`s farms, net farm income in 2019 for a family of four was just above the federal poverty line of $US 25,750. Trump`s “easy-to-win” trade war compounded a net collapse in property revenue that began in 2013. That`s remarkable, because non-agricultural goods – including cars, auto parts and planes – account for both the bulk of U.S. exports to China and the very large U.S. trade deficit with China, which Mr. Trump criticized.

We now know why Beijing included a force majeure clause in the agreement, but the language that China insisted on in December, according to an informal adviser close to the White House and speaking on condition of anonymity, creates a way out for the entire agreement and should have been seen as another wake-up call for the appearance of coronavirus. WASHINGTON – President Trump criticized China for failing to stop the end of the trade deal on Friday and said he was “very torn” about the fate of the agreement signed in January, although his closest economic advisers issued a statement assuring the world that the ceasefire was intact.

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