US, China to finalise phase one trade deal

US and Chinese officials are “close to finalising” some parts of a trade agreement after high-level telephone discussions on Friday, the US Trade Representative’s office and China’s Commerce Ministry said, with talks to continue.

The USTR provided no details on the areas of progress.

“They made headway on specific issues and the two sides are close to finalising some sections of the agreement. Discussions will go on continuously at the deputy level, and the principals will have another call in the near future,” a statement said.

Washington and Beijing are working to agree on the text for a “Phase 1” trade agreement announced by US President Donald Trump on 11 Oct. Trump has said he hopes to sign the deal with China’s President Xi Jinping next month at a summit in Chile.

In a separate statement posted on China’s Ministry of Commerce website on Saturday morning, Beijing confirmed “technical consultations” on some parts of a trade agreement were basically completed.

Agricultural products are a major area of discussion.

China’s Commerce Ministry said both sides confirmed the US will import Chinese-made cooked poultry and catfish products, while China will lift a ban on US poultry.

Beijing wants the United States to cancel some existing US tariffs on Chinese imports, people briefed on the Friday call told, in return for pledging to step up its purchases of US commodities like soybeans.

The United States wants Beijing to commit to buying these products at a specific time and price, while Chinese buyers would like the discretion to buy based on market conditions.