Three to five weeks needed to write Phase 1 that includes $40-$50 bil. in ag purchases
President Donald Trump today called a Phase 1 of possibly a two to three-phrase deal with China "substantial" but said key details still need to be worked out, including three to five weeks to put Phase I into a written agreement.
Chinese Vice Premier Liu He said there were "very good" negotiations with USTR Bob Lighthizer and Secretary Steven Mnuchin.
The Chinese press is calling this a pause, while the American side is calling it a deal.
The measure reportedly includes an agreement in principle under Phase 1, which will be written in three to five weeks:
- $40 billion to $50 billion in ag purchases, including 30 MMT soybeans and unspecified amount of pork
- Structural ag issues also addressed
- Deal on intellectual property
- Agreement on currency and foreign exchange issues
Huawei is not included in the Phase 1 accord.
Beijing is also said to have made some concessions regarding its practice of forcing companies to have joint ventures to set up some companies in China as of June 1, 2020, but details on this are murky and this may only apply to certain companies. As noted, there is a deal on intellectual property and some agreement on currency and foreign exchange issues.
In return, the U.S. reportedly suspended tariffs set to take effect Oct. 15 and possibly those slated for Dec. 15.
Trump met with Liu this afternoon, with a press event expected shortly and this dispatch will be updated as additional information becomes available.