
The Office of the United States Trade Representative (USTR) launches a compliance review of the U.S.-China Economic and Trade Agreement, signaling a potential shift in trade relations between the world’s two largest economies.
At a Glance
- USTR announces compliance review of U.S.-China Economic and Trade Agreement
- Review follows President Donald Trump’s “America First Trade Policy”
- China’s adherence to WTO commitments under scrutiny
- Potential implications for future U.S.-China trade negotiations
USTR Initiates Compliance Review
The Office of the United States Trade Representative has announced a comprehensive compliance review of the Economic and Trade Agreement between the United States and China. This pivotal move, made in accordance with President Donald Trump’s “America First Trade Policy,” aims to assess whether China is fulfilling its commitments under the agreement.
“The Office of the US Trade Representative (USTR) is conducting this review to determine if China is acting in accordance with the commitments it made in the agreement,” the USTR stated.
While the announcement did not explicitly mention the phase one trade agreement signed in January 2020, it has sparked speculation about its relevance to the current review. Scott Bessent, Trump’s nominee for Treasury secretary, has indicated that the phase one agreement would serve as a starting point for trade relations with China, suggesting a potential continuation of previous trade policies.
A review of this agreement could fundamentally change how our two countries do business – and will almost certainly but a ton of pressure on China.
China’s WTO Compliance Under Scrutiny
Concurrent with the compliance review, the USTR has released its 2024 Report to Congress on China’s WTO Compliance. This annual report, mandated by the U.S.-China Relations Act of 2000, provides a comprehensive assessment of China’s adherence to its World Trade Organization commitments.
“China continues to represent the biggest challenge to the international trading system. After 23 years of membership in the World Trade Organization, China still embraces a state-directed, non-market approach to the economy and trade, which runs counter to the norms and principles embodied in the WTO,” Ambassador Katherine Tai said.
The report highlights China’s non-market policies and practices, which are viewed as anticompetitive and detrimental to global industries. It underscores the need for a robust response to address these challenges effectively.
The compliance review and the WTO report findings could have far-reaching implications for future trade negotiations between the United States and China. As the Biden-Harris Administration has implemented a multi-faceted strategy to address U.S.-China trade challenges, including domestic investment and building international coalitions, the results of this review may influence the direction of these efforts.
Between immigration and rebalancing trade with China, Trump could transform America for the better.