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Wednesday, February 12, 2020

Lighthizer Spells Out Why He Thinks China Will Meet Purchase Commitments

U.S. Trade Representative Robert Lighthizer fully expects that China will live up to the terms of the phase-one trade deal negotiated between the two sides.

In comments to USDA Secretary Sonny Perdue in the ag chief’s Sonny Side of the Farm podcast, Lighthizer said the enforcement provisions in the deal are very strong and solid.

But he also offered an interesting observation when it comes to the texts of the agreements. In most cases with agreements, there are differences in meanings when it comes to texts in different languages, he noted. “So I said, ‘bring me these other agreements, all these agreements with China – they agreed they would do this or that.’” He pointed to several agreements negotiated with China over the past 10 years, stating, “I found out none of them were in writing. They were just a press release from the United States. Well I thought, ‘Well no wonder China did not think they have to…’ it is breath taking to hear about these agreements, you read the press release and then you say, ‘Let me see the actual agreement,’ and there is no actual agreement … literally nothing there – not in Chinese not in English.”

The phase-one agreement is “in both languages. It has been authenticated, it has dispute settlement, and enforceability. And it is signed at the highest levels of government,” Lighthizer said. “I think the Chinese want to do this. I think the ag purchases, in particular, are in their interests for sure. I think they are going to do it, but if they do not, we have an enforcement mechanism to insist on it.”