The United States has already reacted to China`s influence on trading partners. The Obama administration negotiated and signed the Trans-Pacific Partnership. It was a comprehensive trade agreement with Asian countries, which left China out of the way. Trump set the deal on fire. Starting with our October 26, 2020 report, we have seasonally adjusted the monthly purchase commitment targets to reflect this month`s relative weight for these products in the 2017 trade data. Note that the monthly targets for the end of 2020 serve only to illustrate. There is nothing in the text of the agreement to indicate that China must achieve anything other than the end-of-year targets. Estimate based on the methodology described in this appendix. These products are defined by the USITC 2020 Covid-19 Related Goods: U.S.
Imports and Tariffs, converting harmonized tariff codes into Schedule B codes. Source: Author`s calculations. U.S. sales of medical aid to China also exceeded 2020. Similarly, exports of products needed to diagnose or treat diseases related to COVID-19, such as test kits. B and drugs, such as test kits and drugs, have followed the estimated targets (see Figure 2). But then again, the likely explanation was increased Chinese demand caused by an unexpected pandemic. These sales could disappear just as quickly as the health situation stabilizes. Other U.S. agricultural exports also outperformed their current targets, albeit on a smaller scale. Until September, maize exports to the United States were higher than the commitment, in part because China had complied with a 2019 WTO ruling against its unoccupied tariff quotas.
(To do this, China also increased maize imports from other countries by more than 200 percent in 2020 from 2017 levels.9) U.S. cotton sales to China also improved in 2020. But for Trump`s aggregate ratios, hundreds of millions of dollars in additional sales of pork, corn and cotton are fading from billions of dollars in lost soybean sales. “Because of its size, the global regional economic partnership will certainly contribute to global free trade,” he said. President Barack Obama has defended the Trans-Pacific Trade Pact to oppose China, which is writing global trade rules for the 21st century. But days after taking office, President Trump withdrew the United States from the agreement and imposed tariffs on trading partners and sparked a trade war with China. The administration has indicated that it will address some of these changes in Phase 2 of the negotiations and will partially maintain tariffs to maintain leverage for the next roundtable. Trump said he would remove all tariffs if the two sides reach an agreement in the next phase.
The Phase 1 agreement does not cover nearly 30% of the products that the United States exports to China. Not surprisingly, China`s imports of uncovered goods did even worse in 2020, 26% less than in 2017 (Chart 1, panel c). On the other hand, Chinese imports of uncovered products from the rest of the world increased by 3.4% (panel d). Leaders of China and 14 other countries in the Asia-Pacific region have signed one of the largest free trade agreements in history, which includes 2.2 billion people and 30% of global economic output. While updates on the trade war have informed investors of much of the past two years, the official signing of the agreement has been greeted with a shrug. The S-P 500 increased by about 0.2%. An indicator for semiconductor companies, which were particularly sensitive to the trade war, fell by more than 1 percent. According to a blog analysis by the Brookings Institution, the Trans-Pacific Agreement and the new RCEP “will together offset global losses resulting from the trade war between the United States and China, but not for China and the United States.” However, in the run-up to the U.S. election, evidence indicates that the agreement is not keeping Trump`s promise.1 The latest