With both countries potentially lifting tariffs, the U.S. and China are reportedly nearing a trade deal. A formal agreement could come around the end of March, although hurdles do remain in such a potential arrangement, The Wall Street Journal reported.
The U.S. is reportedly pondering the removal of many sanctions brought against products from China, while China is said to be willing to decrease restrictions and tariffs on some American goods. With such an arrangement, China could also quicken the jettisoning of limitations of foreign ownership of car ventures. It could also cut tariffs on vehicle imports below 15 percent, where they stand now. In addition, the country might increase purchases of goods from the United States.
At the same time, it was reported that U.S. Trade Representative Robert Lighthizer noted last week that 30 pages out of a document numbering over 100 pages were dedicated to intellectual property protection issues. At the same time, negotiators are talking about a plan that would have meetings of officials from the U.S. and China be the adjudicators of intellectual property disputes.
The news comes after it was reported that the United States’ and China’s trade war has ended up costing billions of dollars for both sides last year. Agriculture, in particular, was said to feel the most pain. China, for example, is the world’s largest soybean importer. Facing the trade war, the country has been buying soy from Brazil. That action, however, has brought in record Brazilian soy premiums. That was one example of how the trade war is impacting both the U.S. and China.
Purdue University agriculture economist Wally Tyner said, according to Reuters, “It’s something that’s crying for a resolution.” Tyner continued, “It’s a lose-lose for both the United States and China.” The news outlet reported, citing the Department of Agriculture, that total U.S. agriculture export shipments to China dropped 42 percent in the first ten months of the year to roughly $8.3 billion.