President Trump Announces Date for Signing U.S-China Phase-One Trade Agreement…

Earlier today, via Tweet, President Trump announced the ‘phase-one’ agreement between the U.S. and China will be signed January 15, 2020.

As U.S. Trade Representative Robert Lighthizer previously stated this very challenging agreement will be the first-ever attempted trade deal between a state-run economy and a free-market economy.   It will take time to see if communist China will actually follow-through on the terms and conditions.

Ambassador Lighthizer noted the principle challenge is generating an enforceable set of standards -within a written agreement- between a totally controlled communist economic system (China) and a free-market system (USA). No other nation has ever tried, and there is no preexisting trade agreement to facilitate a mapping. What Lighthizer was/is constructing will be what all nations will start to use going forward. This is historic stuff.

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Arguably, next to President Trump, USTR Lighthizer is one of the most consequential members of the administration. What he was/is constructing, with the guidance of President Trump, is going to influence generations of Americans.

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[Transcript] MARGARET BRENNAN: This week, the U.S. and China agreed on the first phase of a trade deal that would roll back some American tariffs. It’s expected to be signed in early January. We’re joined now by the U.S. Trade Representative, Robert Lighthizer, the top negotiator in those talks with Chinese officials. Good to have you here.

U.S. TRADE REPRESENTATIVE ROBERT LIGHTHIZER: Thank you for having me, MARGARET.

MARGARET BRENNAN: It’s huge to have the two largest economies in the world cool off some of these tensions that have been rattling the global economy. But I want to get to some of the details here. China says still needs to be proofread, still needs to be translated. Is you being here today a sign this is done, this deal’s not falling apart?

AMB. LIGHTHIZER: So first of all, this is done. This is something that happens in every agreement. There’s a translation period. There are some scrubs. This is totally done. Absolutely. But can I make one point? Because I think it’s really important. Friday was probably the most momentous day in trade history ever. That day we submitted the USMCA, the Mexico-Canada Agreement with bipartisan support and support of business, labor, agriculture. We actually introduced that into the House and the Senate on this, which is about 1.4 trillion dollars worth of the economy- I mean of- of trade. And then in addition to this, which is about 600 billion, so that’s literally about half of total trade were announced on the same day. It was extremely momentous and indicative of where we’re going, what this president has accomplished.

MARGARET BRENNAN: Well, that is significant and I do want to get to the USMCA. But because the China deal just happened–

AMB. LIGHTHIZER: Right.

MARGARET BRENNAN: –and we know so little about it, I’d like to get some more detail from you. You said this is set.

AMB. LIGHTHIZER: Yes.

MARGARET BRENNAN: You expect the signing in early January still.

AMB. LIGHTHIZER: Right.

MARGARET BRENNAN: What gives President Trump the confidence to say China’s going to go out and buy $50 billion worth of agricultural goods because Beijing hasn’t said that number?

AMB. LIGHTHIZER: First of all- let me say first of all, I would say this. When we look at this agreement, we have to look at where we are. We have an American system, and we have a Chinese system. And we’re trying to figure out a way to have these two become integrated. That’s what’s in our interest. A phase one deal does the following: one, it keeps in place three hundred and eighty billion dollars worth of tariffs to defend, protect U.S. technology. So that’s one part of it. Another part of it is very important structural changes. This is not about just agricultural and other purchases, although I’ll get to that in a second. It’s very important. It has IP. It has- it has–

MARGARET BRENNAN: Intellectual property–

AMB. LIGHTHIZER: –technology. It has- it has currency. It has financial services. There’s a lot of very- the next thing is, it’s- it’s enforceable. There’s an enforcement provision that lasts 90 days- it takes 90 days and you get real, real enforcement. The United States can then take an action if China doesn’t keep its commitments–

MARGARET BRENNAN: Put the tariffs back on?

AMB. LIGHTHIZER: Well, you would take a proportionate reaction like we do in every other trade agreement. So that’s what we expect. And finally, we’ll- we’ll find out whether this works or not. We have an enforcement mechanism. But ultimately, whether this whole agreement works is going to be determined by who’s making the decisions in China, not in the United States. If the hardliners are making the decisions, we’re going to get one outcome. If- if the reformers are making the decisions, which is what we hope, then we’re going to get another outcome. This is a- the way to think about this deal, is this is a first step in trying to integrate two very different systems to the benefit of both of us.

MARGARET BRENNAN: But that $50 billion number, is that in writing?

AMB. LIGHTHIZER: Absolutely. So- so here’s what’s in writing. We- we have a list that will go manufacturing, agriculture, services, energy and the like. There’ll be a total for each one of those. Overall, it’s a minimum of 200 billion dollars. Keep in mind, by the second year, we will just about double exports of goods to China, if this- if this agreement is in place. Double exports. We had about 128 billion dollars in 2017. We’re going to go up at least by a hundred, probably a little over one hundred. And in terms of the agriculture numbers, what we have are specific breakdowns by products and we have a commitment for 40 to 50 billion dollars in sales. You could think of it as 80 to 100 billion dollars in new sales for agriculture over the course of the next two years. Just massive numbers.

MARGARET BRENNAN: And that is important in no small part because also this is a key political constituency for President Trump going into the election, to take some pain off of American farmers who’ve been feeling it pretty strongly. I mean, the USDA projects that the soybean market won’t recover, I think til 2026 because of the damage that has been done to it.

AMB. LIGHTHIZER: Listen–

MARGARET BRENNAN: Is that- how much of that, that political calculus, factored into the agreement to do this in phases? Because you didn’t want to do it in phases.

AMB. LIGHTHIZER: Well, it was MARGARET–

MARGARET BRENNAN: The Chinese did.

AMB. LIGHTHIZER: It was always going to be in phases. The question was, how big was the first phase? Anyone who thinks you’re going to take their system and our system that have- that have worked in a very unbalanced way for the United States and in- in one stroke of the pen change all of that is foolish. The president is not foolish. He’s very smart. The question was, how big- how big was the first phase going to be? This is going to take years. We’re not going to resolve these differences very quickly. On the agriculture point, that’s a good point. Let me say this. If you look at American agriculture in between USMCA, which is Canada and Mexico, China, Japan, Korea, we have rewritten the rules in favor of American agriculture on more than half, 56 percent, of all of our exports from agriculture. This, over the course of the last year, what this president has accomplished in this area, is remarkable. And you’re already- any one of these deals would have been monstrous. And the fact that we have all of them together–

MARGARET BRENNAN: Right.

AMB. LIGHTHIZER: –is- is great for agriculture.

MARGARET BRENNAN: I just want to button up on China, though, because the promise here was to do the things that American businesses have been complaining about for years–

AMB. LIGHTHIZER: Absolutely.

MARGARET BRENNAN: Not just the intellectual property theft, but subsidizing corporations in China in an unfair way for Americans. Cybertheft. None of that’s here.

AMB. LIGHTHIZER: Well–

MARGARET BRENNAN: That’s phase two. When do you start negotiating that?

AMB. LIGHTHIZER: So let me say first of all–

MARGARET BRENNAN: Is there a date?

AMB. LIGHTHIZER: Let’s talk about what’s here rather than what’s not here.

MARGARET BRENNAN: But that’s huge.

AMB. LIGHTHIZER: Absolute rules on–

MARGARET BRENNAN: That’s what President Trump said this whole trade war was starting on.

AMB. LIGHTHIZER: Look at tech- tech transfer is huge. That’s what’s in the 301 report. Look, we had a plan that- the president came up with a plan. We’ve been following it for two and a half years. We are right where we hope to be. Tech transfer, real commitments, IP, real specific commitments. I mean, this agreement is 86 pages long of detail. Agricultural barriers removed in many cases, financial services opening, currency. This is a real structural change. Is it going to solve all the problems? No. Did we expect it to? No. Absolutely not.

MARGARET BRENNAN: Do- the president said those talks in to start immediately, though. Do you have a date?

AMB. LIGHTHIZER: We don’t have a date, no. What we have to do is get this- we have to get the- the final translations worked out, the formalities. We’re going to sign this agreement. But I’ll tell you this. The second Phase 2 is going to be determined also by how we implement phase one. Phase one is going to be implemented right to the- right down to every detail.

MARGARET BRENNAN: I want to–

AMB. LIGHTHIZER: It really is a remarkable agreement, but it’s not going to solve all the problems.

MARGARET BRENNAN: Well, we need to take a short break. We’ll be back with US Trade Representative Lighthizer in a moment.

*COMMERCIAL*

MARGARET BRENNAN: Welcome back to Face the Nation and our conversation with US Trade representative Robert Lighthizer. Let’s talk about the other agreement. The House is set, Democratic controlled House, is set to vote on the USMCA, the free trade deal with Mexico and Canada that’s been rewritten. This is a win for the president to get this through, but Nanc- Speaker Pelosi and her caucus did have some last minute maneuvers here. Speaker Pelosi is quoted as saying we ate their lunch when it comes to the Trump administration.

AMB. LIGHTHIZER: So–

MARGARET BRENNAN: How do you respond to that?

AMB. LIGHTHIZER: We had a great–

MARGARET BRENNAN: You made some concessions to labor here. That was not insignificant and it did irk some Republicans.

AMB. LIGHTHIZER: So- so- so let me- let me make a point about that. We had an election and the Democrats won the House, number one. Number two, it was always my plan and I was criticized for this, as you know, it was always my plan that this should be a Trump trade policy. And a Trump trade policy is going to get a lot of Democratic support. Remember, most of these working people voted for the president of the United States. These are- these are not his enemies. So what did we concede on? We conceded on biologics. Yes. That was a move away from what I wanted, for sure. But labor enforcement? There’s nothing about being against labor enforcement that’s Republican. The president wants Mexico to enforce its labor laws. He doesn’t want American manufacturing workers to have to compete with people who are- who are operating in- in- in very difficult conditions. So there’s–

MARGARET BRENNAN: But you don’t think there’s a political cost because Republican senators were annoyed to be cut out of this last phase?

AMB. LIGHTHIZER: Look it there are- there are always process issues. This bill is better now with the exception of biologics, which is a big exception. With the exception of biologics, it’s more enforceable and it’s better for American workers and American manufacturers and agriculture workers than it was before. For sure.

MARGARET BRENNAN: Mr. Lighthizer, Thank you very much for joining us.

AMB. LIGHTHIZER: Thank you for having me.

[End Transcript]

This entry was posted in Big Government, China, Communist, Donald Trump, Economy, media bias, President Trump, Trade Deal, Uncategorized. Bookmark the permalink.

36 Responses to President Trump Announces Date for Signing U.S-China Phase-One Trade Agreement…

  1. Mo says:

    Lighthizer works for Tsinghua University with Mike Pompeo to develop smart dirty clean energetic material that could be explosive in order to free little kim from daddy xi and give him a McDonalds.

    Like

  2. A2 says:

    A2 says:
    December 30, 2019 at 7:20 pm

    China’s top negotiator Liu He to visit Washington for phase one trade war deal signing this week, source says
    Vice-Premier Liu He has accepted an invitation to lead a delegation to the US from this Saturday, a source briefed on the matter told the Post
    US trade representative Robert Lighthizer previously said phase one trade deal would be signed in the first week of January’

    Excerpt:

    ‘ Vice-Premier Liu He is set to lead a delegation to Washington this Saturday, where he is expected to sign a phase one deal that would significantly de-escalate the US-China trade war, a source briefed on the matter has told the South China Morning Post.
    “Washington has sent an invitation and Beijing has accepted it,” said the source, who declined to be named due to the highly sensitive nature of the information. The Chinese delegation is expected to stay “a few days” in the US until the middle of next week, the source added.
    Neither side has officially confirmed the trip. China’s Ministry of Commerce was not immediately available for comment’

    https://www.scmp.com/economy/china-economy/article/3043978/chinas-top-negotiator-liu-he-visit-washington-phase-one-trade?utm_content=article&utm_medium=Social&utm_source=Twitter#Echobox=1577711234

    Seems the 15th in DC, the back to PRC for more negotiations on phase2.

    Need to see the 80plus pages as the fact sheet is just the highlights. So far the PRC has not released any details.

    No real clues in Chairman Xi Mao2.0’s New Year speech.

    Like

  3. deepdivemaga says:

    Related side note. Peter Navarro has been on Steve Bannons podcast “WarRoom: Impeachment” two times this week (maybe 3, he’s been on a fair amount.)

    Great input from Peter, they believe this upcoming decade will also be coined the Roaring 20s!

    Liked by 5 people

  4. ABN says:

    I will be very surprised if this deal works out.

    Liked by 1 person

    • Robert Smith says:

      I don’t think anyone will be surprised if China breaks it. But, I assume, the penalties or tariffs on the other side are where we wanted to be anyway. It’ll be yet another demonstration that China’s word is worthless.

      Liked by 5 people

      • PREDICTION: The “Enforcement Mechanism” of China Deal 1.0 will NOT be about the Penalties/Tariffs it triggers … but RATHER about the “CONSEQUENCES” they produce, whose effects will be far more powerful than CCP State Leaders could imagine.

        Like

  5. Republicanvet91 says:

    This economic news over the past few days explains the panicked news articles yesterday and today claiming the tariffs are backfiring on POTUS.

    Liked by 1 person

  6. Robert Smith says:

    Brennan: “This week, the U.S. and China agreed on the first phase of a trade deal that would roll back some American tariffs.”

    Yeah, wow, that was the whole point right?!

    Give it a rest please.

    Thanks, Marge! 😉

    Liked by 1 person

  7. Sentient says:

    Man she’s insufferable. She asks a question and then interrupts before he’s able to get out his third word – over and over and over. Like Chris Matthews.

    Liked by 4 people

  8. MfM says:

    I noticed the Dow was down yesterday and down today… well until Trump’s tweet when it started to climb and ended today up.

    Liked by 1 person

    • MaineCoon says:

      US Market Closings:

      Dow advanced 76.30 points or 0.27% to 28,538.44
      S&P 500 advanced 9.49 points or 0.29% to 3,230.78
      Nasdaq advanced 26.61 points or 0.30% to 8,972.60
      Russell 2000 advanced 4.32 points or 0.26% to 1,668.47

      Liked by 1 person

  9. Joebkonobi says:

    I can hardly stand to watch Margie. President Trump could cure cancer and Margie would be complaining about the lack of population control.

    Liked by 1 person

  10. California Joe says:

    WINNING! Oh no, Mr. President please no more winning!

    Like

  11. Dances with Wolverines says:

    Nobody, NOBODY appreciates what our beloved Wolverines are accomplishing more than we here at the Treehouse, thanks to Sundance.

    Like

  12. Announcing the date will be the cue for the Dems to probably present the Articles to the Senate on the day before or the same day. I’d wager part of my social security check on it.

    Liked by 1 person

  13. A2 says:

    A detail in the SCMP this morning that the President will go to Beijing for phase 2

    ‘ A partial new US-China trade agreement will be signed in the middle of next month, US President Donald Trump said on Tuesday, announcing that he will also then travel to China for continued talks.
    “I will be signing our very large and comprehensive Phase One Trade Deal with China on January 15,” Trump tweeted.
    “The ceremony will take place at the White House. High level representatives of China will be present.”
    Trump said he would then travel to Beijing to begin talks on the next phase.’

    And as before:
    ‘ The text of the agreement has not yet been made public pending legal and translation reviews, US officials say, and details remain scant.’

    https://www.scmp.com/news/world/united-states-canada/article/3044147/donald-trump-sign-phase-one-us-trade-deal-china

    (I’m waiting for Kim fatty3’s speech probably in about 45 minutes, though I posted on the open pres thread the points made at the four-day meetings with the comrades).

    Liked by 1 person

    • A2 says:

      FYI
      ‘North Korean leader Kim Jong-un has declared that Pyongyang is abandoning its moratoriums on nuclear and intercontinental ballistic missile tests, state media reported Wednesday.
      “There is no ground for us to get unilaterally bound to the commitment any longer,” the official KCNA news agency cited him telling top ruling party officials.
      “The world will witness a new strategic weapon to be possessed by the DPRK in the near future,” it cited him as saying.‘

      Liked by 1 person

  14. A2 says:

    China releases regulation on implementing foreign investment law

    BEIJING, Dec. 31 (Xinhua) — China has unveiled a regulation on implementing the foreign investment law to better protect the legitimate rights and interests of foreign investors.
    Premier Li Keqiang signed a State Council decree to publish the regulation. It will take effect on Jan. 1, 2020, the same day when the law becomes effective.
    As a matching regulation to the foreign investment law, the regulation highlights the promotion and protection of foreign investment and details measures to ensure the effective implementation of the law.
    The regulation encourages and promotes foreign investment via terms to protect the legitimate rights and interests of foreign investors, standardize the administration of foreign investment, improve the business environment as well as advance opening up to a higher level.
    The regulation stipulates that foreign-invested enterprises will enjoy the same favorable policies as domestic companies, and will be treated equally in standard-setting and government procurement activities.
    In addition, the regulation details measures to compensate foreign investors for requisition, ban forced technology transfer, protect business confidentiality as well as improve the mechanism for foreign-invested firms to file complaints.
    The regulation clarifies the implementation mechanism of the negative list of foreign investment access and details registration and reporting system of foreign investment.
    The regulation also stipulates investment policies for enterprises from Hong Kong, Macao and Taiwan, and legal responsibilities for violations of the regulation.

    http://www.xinhuanet.com/english/2019-12/31/c_138669461.htm

    Again no details or text yet.

    Like

    • lftpm says:

      In the 1990’s the best domestic M&A’s were done. What little was left was largely self-financible by corporations. The banksters wanted more money: convince the industrial CEOs to take big loans out to move factories to China, with the promise of quick returns on investment via factory wage costs that were one-tenth those of US operations. Big retailers were also convinced they could make out like bandits with much lower cost products to sell to American consumers at high profit margins.

      The CEOs and Board of Directors did not realize that their new Chinese partners would steal their American technology, or run after-hours production manufacturing counterfeit goods. American workers didn’t know what hit them, as they received pink slips for lost jobs that were transferred to their cheap counterpart Chinese workers.

      The industrial CEOs basically exchanged American union extortion for Chinese government extortion and theft.

      Trump is challenging this situation. Hr knows we cannot survive buying ChCom phones with spying hardware and software, steel for our ships and tanks whose supply can be cut off at China’s whim, et al.

      Liked by 1 person

  15. The ONLY good trade agreement/treaty between a totally controlled communist economic system (China) and a free-market system (USA) is NO trade agreement/treaty at all!

    Our main concern should be an HONEST uncomplicated deal with no great worries about enforcement!

    So No deal! We pass and that is our final answer.

    We do not need the headaches and aggravations!

    “Peace, commerce and honest friendship with all nations; entangling alliances with none.” –Thomas Jefferson

    Liked by 1 person

  16. fangdog says:

    It is not in the best interest for the US to have a financially broke China. We need buyers for our goods. China’s communist government will be forced to act more like a Capitalist Government in terms of its financials and economy. This should result in a long-term positive in regard to the Chinese people. I see it as a great potential for the American worker as well as a great long term potential for the Chinese worker.

    Like

  17. Dutchman says:

    Ultimately, its going to “work” or not, based on who is making the decisions in CHINA. If its the ‘hard liners’ or the ‘reformers’.

    C’mon man! Thats like a reformer in Iran, who STILL calls for the end of Israel and the U.S., and calls for martyers.

    Its like a ‘reformed’ rattlesnake.

    Are the,’reformers’ going to shut down the political prisoner organ donor bank?

    Of COARSE not! So, I don’t see this as possibly working, as a trade agreement.
    As a device for facilitating decoupling?
    SURE, I see it ‘working’ fine for THAT.

    Liked by 1 person

  18. Ausonius says:

    The Chinese Communists have thrown another Christian pastor into jail for 9 years, along with jailing and torturing 80 members of his church.

    From The Wall Street Journal

    “An outspoken Christian leader was sentenced by a Chinese court to nine years in prison, an unusually harsh punishment for a religious leader, as President Xi Jinping tightens control of religion and curtails dissent.

    Pastor Wang Yi was sentenced Monday for incitement of subversion of state power and illegal business operations, the court in Chengdu said, charges the government often lodges against political dissidents and underground religious leaders.

    Mr. Wang’s Early Rain Covenant Church in the central city of Chengdu was for years one of China’s most politically active, spearheading petitions for religious freedom, including one last year that drew signatures from across the country. The Protestant church held an annual service to remember the government’s deadly 1989 crackdown on democracy protesters in Beijing’s Tiananmen Square. Observance of the massacre is heavily restricted in mainland China….

    …at least 80 members of the Early Rain church were tortured during their detention and that many others have been required to check in five times a day with security handlers since their release.

    Chengdu’s public-security bureau didn’t immediately respond to a request for comment.

    While unauthorized churches have always been illegal in China under Communist Party rule, many have been allowed to operate. But Mr. Xi has been concerned about the power of religion to spark unrest and has ordered strict party control of religious activities, prompting a wave of church shutdowns and clergy detentions last year….”

    Why are we doing business of any kind with them?

    See:

    https://www.wsj.com/articles/activist-chinese-pastor-gets-nine-year-prison-sentence-11577698307?mod=searchresults&page=1&pos=1

    Like

  19. jeans2nd says:

    That last pic – Amb Lighthizer and Dr Navarro – China always knew Dr Navarro, purposely left out of the China negotiations, was always in the wings, just waiting for China to make a false move.
    And one suspects Amb Lighthizer would be the most even-and-level-tempered one with whom to negotiate.
    Quite a threat waiting home for the trade warriors to return, huh?

    Curious that Xi is not coming here to sign Phase 1, yet Pres Trump is going to China to begin Phase 2.
    Hostage negotiations?
    we haz ur economy…

    Like

    • Robert Smith says:

      Trump gives China the honor of hosting him and the opening of Round 2 of the Trade deal.

      I think we’ll probably get most of the benefits, but Trump can leave that to China to manage as they see fit.

      Like

      • jeans2nd says:

        Lol…your last sentence…”manage as they see fit”…or not, huh?
        Well done, thank you

        Like

      • 🤔 What’s the possibility that POTUS will require that before scheduling Phase 2 Kickoff Talks, Phase 1 “Enforcement Mechanisms” must PROVE to be EFFECTIVE in both
        • COMPENSATING for Violations and
        • ELIMINATING Violation Recurrences…

        Like

        • Take all the time you need, China, with your inevitable resistance and delays in proving Enforcement Mechanism performance
          … Which enable the USA to use Tariff Funding to DECOUPLE and REINDUSTRIALIZE our Manufacturing and Technology Sectors.

          Like

  20. rustybritches says:

    I don’t understand how this deal is going to work When China is doing everything they can to make sure they stop trading with the US and only buy what they have to threw this agreement Not good start but maybe PT will come back to the original plan and throw on more tariffs if they don’t behave
    I sure hope that he decides that he is threw playing games with China all they ever do is break their word and never think they should be held to account for their bad actions maybe this time some one will make them

    Like

  21. Broc says:

    I have lived and worked in China for 20 years. What we know of this deal is brilliant. However, the very nature of the Chinese is not governed by rule of law, but by force of personalities. AMB. LIGHTHIZER pointed that out with his statement “hardliners or reformers”. The greatest part of intelligence is recognizing what is, not what could be.

    Like

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