Mick Mulvaney, director of Office of Management and Budget declared recently that the outcome of ongoing trade discussions with China will be concluded within a couple of weeks and everyone will know if a new trade bill will be signed or not. While speaking at the Global Conference at Milken Institute Mr. Mulvaney who is also a close advisor to president Trump announced that the discussions are not likely to go on forever and their outcome will be announced within a couple of weeks at most. The United States is negotiating for a new trade deal with China to address concerns related to trade deficit, theft of intellectual property and forcible transfer of technology.
Though the White House is optimistic about striking a viable deal to put an end to its ongoing trade conflict with China that is having a devastating effect on trading partners of both economies, some sticky points are stalling the conclusion process. Investors are also watching the progress of these discussions as failure to reach an amicable deal would affect several business organizations that have operations in both the countries. Mulvaney affirmed that White House would not sign on any agreement unless it was extremely lucrative.
Both sides have major disagreements on issues related to removal of tariffs worth $250 billion on Chinese goods by US followed by provisions to check trade abuses by China. Mulvaney also stated that he is doubtful about the final conclusion to replacement of North American Free Trade Agreement with another deal which is yet to be ratified by Congress. The new agreement which is likely to be referred to as US-Mexico-Canada Agreement is being questioned for detrimental effects it may have on environment and labor welfare. Chairman of Senate Finance Committee has urged president Trump for removal of tariffs on imports of steel from China and aluminum from Canada.