Former Ambassador Jeffrey Gerrish Talks About U.S.-China Trade Negotiations

Characterizing the trade relationship between the United States and China prior to the Trump administration as unfair and marked by huge trade deficits, former Ambassador Jeffery Gerrish described the complex and convoluted process of negotiations to fix those imbalances Dec. 9 during the online 2020 NGFA Country Elevator Conference.

Some takeaways from his address:

• Negotiations covered a variety what Gerrish characterized as unfair trade practices, including theft of intellectual property, forced technology transfers, nontariff trade barriers, and currency manipulation.
• While often criticized at the time, harsh tariff penalties that the Trump administration imposed under Section 703 of the 1974 Trade Act were necessary to bring the Chinese to the negotiating table.
• The resulting Phase One Agreement that went into effect in February 2020, resolved roughly 50 outstanding trade issues between the two countries and created new, streamlined dispute resolution procedures
• Gerrish predicted that the incoming Biden administration will be slow to make additional reductions in tariffs without gaining further concessions from China. Democrats and Republicans mostly agree on maintaining a tough negotiating stance with China.