Lighthizer: ‘Much still needs to be done’ on US-China trade
Credit to Author: AGENCE FRANCE-PRESSE| Date: Thu, 28 Feb 2019 16:22:28 +0000
WASHINGTON, D.C.: Washington’s chief trade negotiator said on Wednesday (Thursday in Manila) there remained much to do before reaching a new trade agreement with China, even as both sides signal their talks are nearing the finish line.
Robert Lighthizer. AFP PHOTO
After months of negotiating with Beijing, “now we are making real progress,” US Trade Representative Robert Lighthizer said in congressional testimony.
However, “much still needs to be done both before an agreement is reached and more importantly after it is reached if one is reached.”
Lighthizer’s remarks to a House committee underscored the remaining hurdles facing negotiators despite the apparent eagerness on both sides to bring their eight-month trade war to an end.
Citing “substantial progress,” President Donald Trump on Sunday said he would postpone a sharp increase in US duties on $200 billion in Chinese imports while the two sides worked to reach an agreement.
He said the final details would be hashed out before a “signing summit” with Chinese President Xi Jinping at an unspecified future date.
Along with Japanese and European officials, the United States accuses China of entrenched unfair trade practices, including massive state intervention in markets, subsidies and the theft of foreign technology.
Chinese officials have offered to increase purchases of American farm goods and energy exports but it remains unclear whether Beijing will give in to US demands for fundamental changes in industrial policy, which analysts say could weaken the communist party’s power.
Lighthizer’s testimony coincided with other headline-grabbing appearances on Capitol Hill, with Federal Reserve Chairman Jerome Powell and former Trump attorney Michael Cohen also appearing.
But Lighthizer’s remark about the remaining work needed in the China negotiations helped send Wall Street lower. Stock prices recovered some of those losses but major indices finished the day mostly lower.
“I don’t think the market is really taking that seriously,” Adam Sarhan of 50 Park Investments told AFP, adding that investors were not unduly worried.
Appearing before the House Ways and Means Committee — which writes tax laws — Lighthizer faced queries during the lengthy hearing from about three dozen lawmakers from across the United States on broad array of matters under negotiation.
Lighthizer said he appreciated the hardships US firms – exporters and importers — have suffered in the trade war, and praised Trump for withstanding the political fallout to pursue a difficult trade policy.
“Because of his insight and grit, we are in a position to deal with this problem for the first time after decades of government inaction,” he said.
Unlike US trade skirmishes with Canada, Mexico, the European Union and others, the hearing showed there was support for the China confrontation among Democrats and Republicans.
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