In “Turning Point for Manufacturers,” U.S. and China Sign “Phase One” Deal and USCMA
At a ceremony at the White House on Wednesday, attended by NAM President and CEO Jay Timmons, the United States and China signed the “Phase One” trade deal between the two countries, securing a key victory for manufacturers in the ongoing trade talks between the two countries. Timmons wrote to President Trump two years ago urging him “to consider pursuing a truly modern, innovative, and comprehensive bilateral trade agreement with China that wholly restructures our economic relationship.” Shortly after, the NAM released a full negotiating objectives framework for such an agreement. The deal signed Wednesday includes core elements of that framework.
The deal includes concrete wins to protect a broad range of U.S. intellectual property, such as trade secrets and patents, and includes commitments on stronger and more independent judicial enforcement in China to tackle longstanding issues, such as China-based counterfeiting, that have harmed manufacturing innovations and the jobs of American workers. China also agreed to specific purchases of American-manufactured products and new enforcement mechanisms in case China does not meet its commitments. While the deal does not include any formal tariff reduction, President Trump reaffirmed U.S. commitments to reduce existing U.S. tariffs on List 4A ($160 billion that went into effect on Sept. 1) from 15% to 7.5%.
“Because of the President’s tenacity and focus, this is an indisputable win for our country and a momentous day in the U.S.–China economic relationship,” said Timmons. “It is a remarkable turning point for manufacturers, with the unprecedented and enforceable commitments on critical intellectual property protections to which China has agreed. The NAM looks forward to working with the Administration in holding China accountable for its ambitious commitments. Additionally, we are committed to achieving more progress in reducing trade uncertainty as the focus of the Administration and the NAM now turn to ‘Phase Two.’” Watch Timmons on CNBC discuss what the “Phase One” trade deal means for manufacturers.
Manufacturers clinched a significant win this week with Senate passage of the history-making United States–Mexico–Canada Agreement. The Senate approved the USMCA by a vote of 89–10, sending the bill to President Trump for his signature. The House of Representatives passed the bill by a strong bipartisan vote of 385–41 in December. Ahead of the vote this week, the NAM urged Senators to support the USMCA, which “will provide new growth opportunities for manufacturers across our country and the millions of manufacturing workers whose jobs depend on North American trade.”
For months, the NAM met directly with key lawmakers and mobilized manufacturing workers and supporters in support of the trade agreement. The NAM changed the conversation and drove the narrative, making the USMCA not about politics but about manufacturing. As with any agreement of this nature, not every objective that manufacturers sought was met, but the NAM achieved manufacturers’ number-one goal: protecting America’s biggest trading relationship with a modernized trade agreement.
Written by: The National Association of Manufacturers.