Recent Trade Agreement With China
But he said that the United States accounts for 25 percent of the world economy, and „We need to align ourselves with other democracies, 25 percent or more, so that we can set the rules of the way, instead of dictating the results of China and others because they are the only game in the city.“ „Because of its size, the global regional economic partnership will certainly contribute to global free trade,“ he said. „The attitude of the Trump administration is that it`s a win-lose proposition: if I have a trade surplus, with you, it`s good for me. If I have a… Trade deficit with you is bad for me,“ Singapore Prime Minister Lee Hsien Loong said at an APEC meeting. And trade is not like that. Trade is a win-win. I may have a surplus with you, I have a deficit with someone else , but it doesn`t matter as long as it`s balanced overall,“ he added. President Barack Obama has defended the Trans-Pacific Trade Pact to oppose China, which is writing global trade rules for the 21st century. But days after taking office, President Trump withdrew the United States from the agreement and imposed tariffs on trading partners and sparked a trade war with China. „R.C.E.P. gives foreign companies more flexibility in navigating between the two giants,“ she said. „Lower tariffs within the region increase the value of exploitation in the Asian region, while uniform rules of origin facilitate the withdrawal of production from mainland China while maintaining that access.“ The pact will most likely formalize business between countries instead of doing it again.
The R.C.E.P. eliminates tariffs on products that already qualify for duty-free treatment under existing free trade agreements. It allows countries to maintain tariffs on imports in sectors they consider to be particularly important or sensitive. The so-called rules of origin of the pact will establish common standards as to the quantity of product to be produced in the region so that the final product can benefit from duty-free treatment. These rules could make it easier for companies to create supply chains across several countries. Other U.S. agricultural exports also outperformed their current targets, albeit on a smaller scale.