
The USTR’s newly initiated compliance review could have significant ramifications on the U.S.-China Economic and Trade Agreement, underscoring the potential shifts in global trade relations.
Quick Takes
- The White House has begun a compliance review to ensure China’s adherence to the U.S.-China Economic and Trade Agreement.
- This review is aligned with President Trump’s “America First Trade Policy.”
- The review’s specifics regarding the phase one trade agreement are not disclosed.
- The compliance review could reshape future U.S.-China policy dialogue.
Review of Trade Agreement Compliance
The U.S. Trade Representative’s office has announced a compliance review to assess China’s adherence to the Economic and Trade Agreement forged between the two nations. This review is a pivotal part of measuring whether China’s actions align with the commitments made under the agreement. The announcement emphasizes that this step is grounded in the “America First Trade Policy,” a core principle from the previous administration aimed at safeguarding American economic interests.
The review comprises assessments of China’s commitments, and any findings will influence subsequent trade negotiations. While details regarding the phase one trade agreement remain undisclosed, Trump’s appointees have indicated a focus on this agreement as foundational for future trade relations with China. This effort highlights the ongoing scrutiny of international economic agreements and their execution.
The Office of the United States Trade Representative announced today that it will review the Economic and Trade Agreement Between the Government of the United States of America and the Government of the People’s Republic of China (PRC) to determine whether the PRC is acting in…
— Craig Shapiro (@ces921) January 24, 2025
USTR’s Annual WTO Compliance Report
The U.S. Trade Representative released the 2024 Report to Congress, which scrutinizes China’s adherence to its World Trade Organization (WTO) commitments. This annual report, now in its 22nd edition, is more relevant than ever as it sheds light on possible discrepancies in China’s trade practices. Ambassador Katherine Tai describes China as a long-standing challenge to the trading system due to its non-market policies.
“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,” said Tai.
Implications and Future Prospects
The compliance review and the annual WTO report are crucial for navigating the complex landscape of U.S.-China trade relations. Moving forward, these assessments could shape ongoing and future policy decisions. The reports underscore the imperative for international communities to address non-market and anticompetitive practices collaboratively. By reinforcing America’s trade interests and principles, the administration seeks to establish a balanced economic playing field.
“This report details the breadth and scale of the constantly evolving non-market policies and practices that China deploys in pursuit of its anticompetitive objectives as well as the serious harm that those non-market policies and practices cause to workers, businesses, and industries in the United States and around the world. It is imperative that the members of the international trading community continue to work together to defend our shared interests against these many harmful policies and practices,” further said Ambassador Tai.
The long-anticipated review results and their subsequent impact will be watched closely, as they hold significant potential to influence the trajectory of future negotiations and relationships involving the two economic powerhouses.