Trade deal with China to boost global economy: US Treasury Secretary Mnuchin

Speaking to the Press at the Doha Forum in Qatar, US Treasury Secretary Steven Mnuchin said on December 14 that the “phase one” trade deal between the United States and China was “very good” for global economic growth, and added that the second phase could come in several steps. The Treasury Secretary further said that the full details of the new deal, or a factsheet on “phase one”, would come out later on Sunday after both sides do fact and language checks.

The deal with China aimed to create more reciprocal trade relations for many years, he added. On Friday, the US and China announced a “phase one” agreement that reduces some of the US tariffs in exchange for Chinese purchases of American farm products and other goods. 

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US to proceed to "phase two" of trade deal

The US Treasury Secretary said that the phase one deal will come to effect in January which will be followed by phase two. To implement the deal, they will have to come to an enforcement agreement after which further negotiations can begin, he said. Mnuchin also mentioned that there are also other important issues left to be able to proceed to 'phase two' - whether there will be a ‘phase two A’, ‘phase two B’ and ‘phase two C’.

He said the deal will boost the global growth and that the US continued to remain the “bright spot” of the global economy, while Europe and Asia were slowing down.

Read: China Welcomes Preliminary Deal In Trade War It Blames On US

Mnuchin on Elections, Iran, sanctions

When Mnuchin was asked if he believed that US President Donald Trump will once again be re-elected, he said that no matter what occurs, he has fair chances of winning. He reasoned it saying that Trump has built an incredible economy and is very focused on national security.

Besides this, the Treasury Secretary also spoke about Iran saying that he believed the United States campaign of maximum pressure on Iran was working and has drastically reduced Tehran’s ability to sponsor what Washington sees as terrorist groups abroad.

Mnuchin also answered to the probability if Washington’s broad and regular use of sanctions against many nations could undermine the long-term status of the dollar as the global reserve currency. He explained that the sanctions were often an alternative to open military conflicts. He moreover cautioned the US on sanctions as people could start using other currencies. 

Read: China-US Phase-one Trade Deal A Good News For All, Says Top Chinese Diplomat

(With inputs from agencies)

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