
The United States Trade Representative has initiated a pivotal compliance review of the Economic and Trade Agreement with China, raising questions about adherence to the “America First Trade Policy” and setting the stage for future negotiations.
Quick Takes
- The White House announced a compliance review of the U.S.-China trade agreement.
- The review follows “America First Trade Policy.”
- Phase one agreement details remain ambiguous.
- A recent report assesses China’s WTO compliance.
U.S.-China Trade Agreement Under Review
The White House has declared a compliance review of the Economic and Trade Agreement between China and the United States to evaluate China’s fulfillment of its commitments. This review aligns with agreements made during the “America First Trade Policy.” Officials have not yet clarified whether this review is limited to the phase one trade agreement, which was signed in January 2020. The review may impact future U.S.-China trade relations and the shaping of economic policy.
Under the Trump administration, the phase one agreement was seen as a starting point for improving trade relations with China. This sentiment was echoed by Trump’s nominee for Treasury Secretary, Scott Bessent. Meanwhile, Jamieson Greer played a crucial role in negotiating this deal as USTR Chief of Staff. Understanding how China has adhered to these agreements is important, not only for current trade conditions but also for configuring subsequent policies.
China’s WTO Compliance: A Growing Concern
The U.S. Trade Representative recently presented the 2024 Report to Congress, evaluating China’s compliance within the World Trade Organization (WTO) under the Biden-Harris administration. The report suggests ongoing concerns with China’s state-directed, non-market economic strategies. These approaches seem to contradict WTO norms, potentially harming global markets and breeding anticompetitive practices. It emphasizes the need for international collaboration to counteract these policies.
The report is pivotal in ensuring China fulfills its multilateral and bilateral commitments, impacting workers, businesses, and industries across the globe. As the 22nd annual publication of its kind, the report maps out China’s adherence to WTO commitments and is backed by extensive findings from the Overseas Compliance Program.
U.S. Trade Policy: Strategic Adjustments
Given the complexities in global trade dynamics, a strategic, multifaceted plan becomes crucial in navigating the U.S.-China economic relations. As international trading systems evolve, transparency and cooperation will be vital in resolving ongoing challenges.
“This report details the breadth and scale of the constantly evolving non-market policies and practices that China deploys in pursuit of its anticompetitive objectives as well as the serious harm that those non-market policies and practices cause to workers, businesses, and industries in the United States and around the world. It is imperative that the members of the international trading community continue to work together to defend our shared interests against these many harmful policies and practices,” said Ambassador Katherine Tai.
Future negotiations may use insights from the USTR’s assessments to advocate for fair trade practices, ensuring alliances serve the broader economic interests of the U.S. and its global partners. Balancing domestic interests with international obligations underscores the challenge and necessity of such reviews.