U.S. Trade Representative Katherine Tai today released the National Trade Assessment 2021, which provides details on the significant trade barriers to U.S. exports of goods and services, investment, and e-commerce posed by trading partners.
The report acknowledges the previous administration’s “Phase I Agreement” with China on U.S.-China trade, saying it “establishes a robust dispute resolution system that ensures swift and effective implementation and enforcement.
The President’s Trade Agenda, released earlier this month, outlines a clear vision to support American working families by promoting a fair international trading system and inclusive economic growth,” Ambassador Dyche said. The National Trade Assessment Report 2021 identifies a series of significant challenges and priorities to guide the Biden Administration’s efforts to develop trade policies that reflect American values and rebuild better.”
The report says, “On January 15, 2020, the United States and China signed a historic economic and trade agreement, known as the ‘Phase I Agreement.’ This agreement calls for structural reforms and other changes to China’s economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, and currency and foreign exchange. The Phase I agreement also includes a commitment by China to make significant purchases of U.S. goods and services in 2020 and 2021.”
In the report, the U.S. Trade Representative affirmed the importance of the agreement, “The Phase I agreement establishes a robust dispute resolution system that ensures swift and effective implementation and enforcement.” Since the Phase I agreement took effect in February 2020, the report said, “the United States has continued to engage with China as issues arise and continues to closely monitor developments.”
In 2020, the U.S. merchandise trade deficit with China is $310.8 billion, a decrease of 10.0 percent ($34.4 billion) from 2019. U.S. merchandise exports to China are $124.6 billion, up 17.1 percent ($18.2 billion) from the previous year. Corresponding U.S. imports from China were $435.4 billion, a decrease of 3.6 percent. In 2020, China is the third-largest market for U.S. merchandise exports.
U.S. direct investment in China was $116.2 billion in 2019, up 6.3 percent from 2018, the report said. U.S. direct investment in China is dominated by manufacturing, wholesale trade, and finance and insurance.
The 570-page report by the U.S. Trade Representative studied 65 countries and territories, including the United States’ largest trading partners, which together account for 99 percent of U.S. foreign merchandise trade and 87 percent of U.S. services trade.
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