US plans to use ‘all available tools’ to implement Phase 1 trade deal
The Biden administration is announcing a change in trade policy with China aimed at forcing the country to comply with “unfulfilled commitments” in a phase one trade deal.
According to a senior administration official, the US plans to use “all available tools” to enforce the phase one trade agreement, although officials specifically denied what enforcement mechanisms the US would use.
The move comes as top US trade representative Katherine Tai ready to announce On Monday that China is not complying with the agreement made by the administration of former President Donald Trump. China agreed to purchase an additional $200 billion in US goods over a two-year period, a pledge officials say the country has so far failed to comply with.
According to senior administration officials, part of the new plan will include restarting the tariff exclusion process targeted to the US. The US will also engage with allies in the hope of promoting fair, competitive, international trade.
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The move would be the first time the administration has pushed back forcefully against China, which so far is projected to run only at 62% of the trade deal target for purchases of US goods and services.
Tai is set to resume direct talks with her Chinese counterpart, where she will stress the need for China to follow through on the rest of its commitments.