The US and China, the world two largest economies, are getting a step closer to finalize their Phase One deal. That happens after high-level telephone discussions on Friday. Both the office of US Trade Representative and China’s Ministry of Commerce officially stated, along with another upcoming discussion on deputy-level to expect.
The Phase One deal, in which US President Donald Trump described as a majorly agricultural deal, is the result of the previous trade negotiation that generates a partial trade deal. The document of the U.S. and China deal, in addition, will be further discussed and signed in November at the APEC summit according to schedule.
Pertinent to the Friday discussion, the US Trade Representative did not disclose rigorous details pertaining to the area of progress.
“They made headway on specific issues and the two sides are close to finalizing some sections of the agreement. Discussions will go on continuously at the deputy level, and the principals will have another call in the near future,” USTR explained in a statement.
Meanwhile, on the Chinese Ministry of Commerce’s website, China has confirmed that both parties completed the discussion on the technical consultations regarding the deal. Additionally, China also testified that agriculture was the main topic of the recent discussion.
China Demands the US to Eradicate Tariffs on Phase One Deal
While previously China strongly demanded the US to cancel all the tariffs, the country finally made another offer. Beijing promises to buy more US commodities such as soybeans if Washington agrees to eradicate the tariffs.
In response to the offer, Washington displays an interest in the offer. However, it is under a condition that China has to buy the products at a specific time and price.
On the other hand, China prefers to make a purchase depending on market conditions. The deal is yet to fix, thus further negotiations will most likely follow.
Given the situation, US President Donald Trump said that the deal is in process.
“They want to make a deal very badly. They are going to be buying much more farm products than anybody thought possible,” Trump said at the White House.