Ustr China Us Agreement
Alongside the noise caused by the Phase One agreement, trade representatives from the United States, Japan and the European Union met on 14 January and announced a proposal to strengthen WTO rules on industrial subsidies, which they said were “insufficient to combat market-distorting subsidies and trade in certain legal systems” , a thinly veiled reference to China. “President Trump and this administration have negotiated a strong trade agreement with China that promises significant benefits for American agriculture,” said Minister Perdue. “We look forward to realizing these benefits this year and are encouraged by the progress we made last week. We are very much looking forward to respecting all elements of the agreement. Washington, D.C. – U.S. Agriculture Secretary Sonny Perdue and U.S. Trade Representative Robert Lighthizer announced today that China has taken many steps to implement its agricultural commitments in time as part of the pioneering U.S. and China Economic and Trade Agreement. The agreement came into force on February 14, 2020. The economic and trade agreement of the first phase addresses certain of China`s actions, policies and practices identified in the Section 301 study on technology transfer, intellectual property and innovation. The agreement begins to rebalance our trade relations and achieves sound and fully applicable commitments to solve structural problems. The 96-day agreement includes eight chapters on intellectual property rights, technology transfer, food and agricultural products, financial services, foreign exchange regulation, trade expansion, dispute resolution and final provisions.
It addresses the main themes of the USTR`s 2017 section 301 investigation into China. Below is a reading of the main provisions of the agreement. The 18-language chapter, which represents one-fifth of the comprehensive agreement, imposes various obligations on trade secrecy, drug-related intellectual property, geographical indications, trademarks, patents, e-commerce infringement and enforcement of pirated and counterfeit goods. The theft of IP and trade secrets has long been a concern of American companies and one of the main triggers of the Trump administration`s customs escalation. The agreement contains provisions for the protection of confidential information that are considered trade secrets – U.S. companies feel that this is not sufficiently protected by Chinese law. Considerable progress has also been made in protecting drug-related intellectual property. The agreement also calls on China to present an “action plan to strengthen intellectual property protection” within 30 days of the agreement`s entry into force. On January 15, 2020, the United States and China signed a historic and binding agreement on a Phase 1 trade agreement. The agreement requires structural reforms and other changes to China`s economic and trade regime. The agreement stipulates that companies should be able to “operate without any force or pressure from the other party to transfer their technology to people on the other side.” Any transfer of technology or license between people from each country must be voluntary in accordance with the agreement.
The two countries also agreed to a provision preventing the government from directing or assisting domestic companies in acquiring foreign technologies that could create “distortions” in sectors and industries. “This China-phase-one agreement is proof that President Trump`s negotiating strategy is working. While It took China a long time to recognize that President Trump was serious, the deal is a great success for the economy as a whole. After all, this agreement is a measure for American agriculture and a boon for American farmers, ranchers and producers,” the United States said.