A Chinese delegation will travel to the U.S. as part of the ongoing trade war as both sides “remain far apart.” China said Thursday the delegation will meet with U.S. Treasury Undersecretary David Malpass to discuss trade issues. However, the South China Morning Post reports observers say the talks are unlikely to yield any breakthrough, but could lead to further negotiations aimed at de-escalating the trade war. Malpass has no authority to negotiate with China on trade, but can set up the basic protocol for a possible future round of talks.
The U.S. is due to issue tariffs on another $16 billion worth of Chinese goods in the next week, with China again vowing to retaliate against the U.S. tariffs. The visit between China and the U.S. is mainly viewed as a means to check and see if future dialogue between the two nations is possible.
In other trade news, the North American Free Trade Agreement renegotiation effort passed the one-year anniversary this week. A year ago Thursday, the U.S., Canada and Mexico convened for the start of the renegotiation talks. Now, the U.S. could be nearing a deal on NAFTA, at least with Mexico. Politico reports the political situation in both countries is such that each is more eager than ever to make a deal, setting up a scenario in which significant progress could be on the near horizon. Plus, the incremental progress, along with “good faith negotiations” between Mexico and the U.S. are offering signs of hope to U.S. farmers and business in the global trade arena.
Mexico says the list of items to resolve is “no longer a question of chapters, it’s now a question of paragraphs and points.” Meetings were scheduled to continue through the end of this week in Washington as negotiators seek an agreement, before moving on to striking a deal with Canada.
Source: NAFB News Service