(AP Photo)China has put a positive spin on a first-phase trade agreement that turns down the temperature on a trade war it blames the United States for starting. Under the “Phase 1” agreement, both sides say they will reduce tariffs and China will buy more US farm products. The purchases include manufactured goods, agricultural goods, energy and services, and are expected to reduce the $419-billion US trade deficit with China, officials said. China bought $130 billion in US goods in 2017, before the trade war began, and $56 billion in services, US data show. The deal subjects any violations of currency commitments to the agreement’s enforcement mechanism, under which they could incur US tariffs.

Source: Bangkok Post December 14, 2019 09:11 UTC