White House has softened economic barrier with China, finalizing a new trade deal for exports. Wilbur Ross, Commerce Secretary said that the two largest economies will reshape their trade relationship for great participation. As a part of the agreement, China will provide greater excess to the American exporters of natural gas.
Beef Over Beef Ends
The broad program covers 10 areas of co-operation which include natural gas, financial services, and agriculture. In agriculture, America will allow Chinese cooked poultry products in the USA while China will provide broader access to American beef products. US has asked China to allow American beef products in the country on several occasions before. However, the deals did not work out.
This time, China will provide access to American beef exporters by July 16, 2017, on certain conditions. The market is worth $2.5 billion, which is now open for the US. The impact of Chinese cooked poultry products on US markets is not specified yet. However, Ross said that the domestic industry will not be bit severely.
Talking to reporters, Wilbur Ross said, “U.S.-China relationships are now hitting a new high, especially in trade. We’re announcing, jointly with the Chinese, the initial results of the 100-day action plan of the U.S.-China Comprehensive Economic Dialogue.”
Trade Deal Means New Relationship Between the Two Countries
The preliminary agreement contains many more trade partnerships to be realized in the future. US firms may enhance their liquid natural gas exports. By July 17, China will also issue bond underwriting and settlement license to Americans. They will select two ‘qualified’ institutions from the US for the same. This is not all, there will be a fresh cooperation between US and China financial regulators to facilitate financial transactions. Additionally, the US will be pushing China to hasten safety reviews of their biotechnology applications. A Chinese entrepreneur summit will also be organized in June in Washington.
US wants to make July 17 the most important and conclusive date for this agreement to mark 100 days of Trump-Jinping meeting. It is important to underline that Trump came strong on China during his campaign days, calling it a currency manipulator. Many Trump supporters expected a tougher stance on China. However, the President has gone soft with the Chinese and focusing on fostering a new relationship in trade. The government is trying to project that new trades with China will not harm the US industries. The effect of the deal on US markets, especially poultry, has not been mapped yet.