Today the Office of the U.S. Trade Representative announced that the United States and China have reached a "Phase One" trade deal.

The United States and China have reached an historic and enforceable agreement on a Phase One trade deal that requires 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 One agreement also includes a commitment by China that it will make substantial additional purchases of U.S. goods and services in the coming years. Importantly, the agreement establishes a strong dispute resolution system that ensures prompt and effective implementation and enforcement. The United States has agreed to modify its Section 301 tariff actions in a significant way.

"President Trump has focused on concluding a Phase One agreement that achieves meaningful, fully-enforceable structural changes and begins rebalancing the U.S.-China trade relationship. This unprecedented agreement accomplishes those very significant goals and would not have been possible without the president's strong leadership," says U.S. Trade Representative Robert Lighthizer.

"Today's announcement of a Phase One agreement with China is another significant step forward in advancing President Trump's economic agenda. Thanks to the president's leadership, this landmark agreement marks critical progress toward a more balanced trade relationship and a more level playing field for American workers and companies," says Secretary of the Treasury Steven Mnuchin.

Related:U.S.-China reach agreement on Phase 1 trade deal

The United States first imposed tariffs on imports from China based on the findings of the Section 301 investigation on China's acts, policies, and practices related to technology transfer, intellectual property and innovation. The United States will be maintaining 25% tariffs on approximately $250 billion of Chinese imports, along with 7.5% tariffs on approximately $120 billion of Chinese imports.

U.S. Meat Export Federation President and CEO Dan Halstrom spoke in favor of this agreement in a USMEF statement.

"China is the world's largest and fastest-growing destination for imported red meat, and the U.S. industry is excited about the prospects for expanded opportunities in China. We look forward to learning more details about this Phase One agreement.

"U.S. pork and beef products have been subject to burdensome retaliatory duties in China since 2018, and this has made it very difficult for the U.S. industry to capitalize on China's rapidly growing need for high-quality proteins," Halstrom adds. "But long before retaliatory duties entered the picture, non-tariff barriers were a major, persistent obstacle for U.S. exporters looking to expand their business in China. USMEF thanks the Trump administration for bringing these issues to the forefront in an effort to persuade China to follow international standards for red meat trade."

Sources: Office of the U.S. Trade Representative and the U.S. Meat Export Federation, which are solely responsible for the information provided, and wholly own the information. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset.