FAST FIVE: Trade Negotiations: US Agrees To A Farm Package, Not Trade Deal With China
It is also wrong to call it a trade “truce” since outstanding tariffs are still in place and future tariffs have not been rescinded.
Both sides agree to establish new rules to prevent currency manipulation (although the US designation of China as a currency manipulator still stands).
On the surface, it would suggest that the bi-lateral trade deficit between the two countries is largely centered in agricultural goods and Country A has a comparative advantage (or a surplus) in farm (agricultural) goods.
In 2018, the bilateral merchandise trade deficit between US and China totaled $419 billion.
In 2018, the US exported $9.3 billion of agricultural goods to China and imported $4.9 billion, recording a small surplus of $4.4 billion in farm products.