US Trade Deal with China Will Boost Global Economy

US Trade Deal with China Will Boost Global Economy

US Treasury Secretary Steven Mnuchin said Saturday a “P-1” trade deal between the United States and China was “very good” for global economic growth, and added that the 2nd phase could come in several steps.

The United States and China cooled their trade dispute Friday, announcing a “P-1” agreement that reduces some US tariffs in exchange for what US officials said would be a big jump in Chinese purchases of American farm products and other goods.

Secretary Mnuchin said full details of the new deal, or a factsheet on “P-1”, would come out late Saturday or Sunday after both sides do fact and language checks.

“We expect it will be fully executed in January. And then we get to ‘phase two’,” Secretary Mnuchin told the Doha Forum conference in Qatar. “The most important issue is – let us make sure we implement Phase 1 with an enforceable agreement, which it is. And then we start negotiating Phase 2.

There are important issue left in Phase 2. And perhaps there will be a Phase 2 A, Phase 2 B and Phase 2 C. We will see,” he said.

Secretary Mnuchin said the deal with China aimed to create more reciprocal trade relations for many years, adding that the deal would be “very good” for global growth.

He said the United States continued to remain the “bright spot” of the global economy, while Europe and Asia were slowing down.

Asked if the trade deal boosts President Trump’s chances of getting re-elected in November 2020, Secretary Mnuchin said: “The President will be re-elected almost no matter what occurs. Because he has built an incredible economy and he is very focused on national security.”

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