US, China Have Not Agreed on Future Tariff Reductions - Joint Statement

WASHINGTON (Pakistan Point News / Sputnik - 15th January, 2020) The United States and China have not reached an agreement on reducing tariffs in the future even after the two countries sign a landmark Phase One trade deal on Wednesday, Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer said in a statement.

"There are no other oral or written agreements between the United States and China on these matters, and there is no agreement for future reduction in tariffs," the statement said as quoted by business Insider.

On Wednesday, Trump and Chinese Vice-Premier Liu He are scheduled to sign at the White House the 86-page Phase One trade agreement.

At last count, the Trump administration had imposed tariffs on $550 billion worth of Chinese products, while China had imposed tariffs on $185 billion worth of US goods.

Mnuchin and Lighthizer said in the statement that the details of the Phase One trade agreement would be made public at Wednesday's signing ceremony.

The only component of the agreement that will not be made public is a confidential annex with specific purchase amounts, they said, because it could influence market behavior.

US media reported earlier that the United States could lower some tariffs if China was found to be in compliance with the terms of the Phase One trade agreement.

The White House, Treasury Department and US Trade Representative's Office declined to confirm whether a review has been set for the fall, the statement said.

As part of the Phase-One trade agreement, China will tighten intellectual property rules, increase agricultural purchases and open up its financial sector.

In return, the Trump administration agreed to cut a 15 percent tariff rate in half for $110 billion worth of products targeted in September as well as delay planned escalations.