US and China agree to establish trade deal enforcement offices
US treasury secretary Steven Mnuchin has said that the US and China have agreed on a mechanism to police any trade deal reached between the two countries.
Mnuchin said it would include establishing “enforcement offices” to implement trade agreement monitoring.
During an interview with CNBC television on Wednesday, Mnuchin said talks were progressing after a “productive” call with China’s vice premier Liu He. He alos said talks were resuming early on Thursday.
US tariffs on China
When Mnuchin was asked about the status of the US tariffs on $250 billion worth of Chinese goods, he declined to comment on whether they would be removed.
‘We've pretty much agreed on an enforcement mechanism, we've agreed that both sides will establish enforcement offices that will deal with the ongoing matters,’ Mnuchin said.
US president Donald Trump had previously mentioned a deal could be likely around the end of April. However, Mnuchin emphasised that Trump was focused on getting the “right deal”, and that Trump would be willing to meet with Presdient Xi Jingping to get the right deal finalised.
Reforms on US intellectual property
The US has demanded that China implement reforms around theft of US intellectual property and cease forced transfers of technology from American companies to Chinese companies.
Mnuchin said he and US trade representative Robert Lighthizer, were focused on the implementation of drafting the documents in the trade agreement.
According to Reuters reports, the two sides are working on broad agreements covering six areas including: forced technology transfer and cyber theft, intellectual property rights, services, currency, agricu Existing tariffs
Earlier in the week the US and China agreed on an enforcement structure to give the US the right to retaliate if China does not honour the terms of agreement, according to US officials.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.