Tags: China | Trump Administration | kudlow | china | trade | tariffs

Kudlow: China Has Chance to Avoid December Tariffs

(Jim Watson/Getty Images)

Monday, 21 October 2019 09:40 AM

White House economic adviser Larry Kudlow expressed optimism about ongoing U.S.-China trade talks, and said that tariffs scheduled for December could be withdrawn if negotiations continue to go well.

The talks, which are expected to continue with calls this week, were "looking pretty good," the veteran financial guru and former Ronald Reagan adviser said in an interview on Fox Business Network. 

"We've made a lot of progress," said Kudlow, who worked as Reagan’s budget deputy between 1981 and 1985.

"I think we're very close on opening financial services and the currency stability deal, which is essentially is an IMF deal. I think the agriculture, they started buying farm products, as you know, $40 [billion] to $50 billion worth,” said Kudlow, who served as the Trump campaign's senior economic adviser.

"If the talks go well on phase one, there is a chance we can get those December tariffs off,” Kudlow told Fox Business Network.

China’s Vice Premier Liu He said Saturday that there had been “substantial progress” with the U.S. to lay the foundation for an initial accord on trade, Bloomberg reported.

However, China is seeking $2.4 billion in retaliatory sanctions against the United States for non-compliance with a WTO ruling in a tariffs case dating to the Obama era, a document published on Monday showed.

WTO appeals judges said in July that the United States did not fully comply with a WTO ruling and could face Chinese sanctions if it does not remove certain tariffs that break the watchdog’s rules, Reuters reported.

The WTO’s Dispute Settlement Body effectively gave Beijing a green light to seek compensatory sanctions in mid-August. The United States said at the time that it did not view the WTO findings as valid and that the judges had applied “the wrong legal interpretation in this dispute”.

China continued to be the “serial offender” of the WTO’s subsidies agreement, the U.S. delegation said. Contacted by Reuters on Monday, the U.S. mission in Geneva had no immediate comment.

Meanwhile, the International Monetary Fund last week welcomed signs of a de-escalation in U.S.-China trade tensions but said an urgent updating of trade rules was needed to restore strong growth to the global economy.

Managing Director Kristalina Georgieva said she was encouraged by news of a tentative trade deal reached by Washington and Beijing last week, but urged the world’s two largest economies to work toward a lasting “trade peace.”

Georgieva, speaking with reporters at the IMF/World Bank annual meetings, also called for concerted efforts to reform the World Trade Organization to better account for e-commerce and the service sector, but also to ensure a more peaceful and prosperous world.

Ending trade tensions between the United States and China was a positive step that would help bolster global economic growth, Georgieva said.

The IMF estimated that a tentative trade deal reached by Washington and Beijing last week could reduce the harm done by tit-for-tat tariffs imposed by both countries over the past 15 months. Instead of dragging global growth down by 0.8%, the impact might be limited to 0.6%, she said.

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White House economic adviser Larry Kudlow expressed optimism about ongoing U.S.-China trade talks, and said that tariffs scheduled for December could be withdrawn if negotiations continue to go well.
kudlow, china, trade, tariffs
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2019-40-21
Monday, 21 October 2019 09:40 AM
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