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China, U.S. close to trade deal
Why is it in news?
- The Trump administration is close to a trade deal with China that would roll back tariffs on both sides of the Pacific.
- Significant details remain unsettled and the deal is still being discussed.
More in news
- Progress made:(1) So far, the two sides have agreed on a pact that would largely require Beijing to make big purchases of U.S. agricultural and energy goods and to lower some barriers that prevent U.S. companies from operating in China.(2) In return, the U.S. would most likely drop its tariffs on at least $200 billion of the $250 billion worth of Chinese imports currently subject to U.S. levies.
- Enforcement mechanism: As part of the agreement, the Trump administration has been pushing China to accept an enforcement mechanism that would enable the U.S. to quickly reinstate tariffs if Beijing fails to live up to specific promises.
- Expanding market: The agreement under discussion would expand markets for U.S. financial services firms and farmers, in part by requiring that China buy large amounts of energy and farm goods, like liquid natural gas and soya beans.
Source
The Hindu