Trump trade negotiator: 'Much still needs to be done' on US-China deal
The U.S. and China have made progress on trade deal negotiations, but more work remains on crafting an agreement that goes beyond Beijing purchasing more American goods, the top negotiator for the Trump administration said on Wednesday.
“Let me be clear: Much still needs to be done both before an agreement is reached and, more importantly, after it is reached, if one is reached," U.S. Trade Representative Robert Lighthizer told the House Ways and Means Committee.
The administration is seeking significant structural changes to China's economy in the agreement -- including shifts to the communist nation's forced technology transfer policy for U.S. companies that want to operate in the country – as well as strong enforcement mechanisms.
While White House officials have voiced optimism over the state of the negotiations, Lighthizer told the panel he was not “foolish enough to think” that one agreement would solve all the trade issues between the two nations.
“Our hope is to have specific language on specific issues that is enforceable through a very clear process,’ he said. “We have to take on the major issues…and we have to specifically preclude anti-market practices and practices that are unfair to our workers, ranchers and farmers.”
The administration plans to address the changes through memorandums of understanding, allowing the White House to bypass congressional approval for any deal with China. Earlier this month, however, President Trump expressed a desire to refer to it as a trade agreement – which would need sign-off from lawmakers.
Lighthizer on Wednesday reiterated that any deal would not be reviewed by Congress, calling it an "executive agreement."
Trump earlier this month said he would abandon plans to hike tariffs on $200 billion in Chinese goods to 25 percent -- up from the existing 10 percent -- and extend levies to an additional $267 billion in products. Lighthizer said an official notice is coming "in the next day or so."
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As negotiations with China continue, Trump is also pressuring Congress to approve a separate trade deal with Mexico and Canada to update the North American Free Trade Agreement.
Democrats have warned that they may seek additional environmental provisions and stronger enforcement mechanisms, demands that would force the U.S. to reopen negotiations and likely sink the agreement.
Lighthizer said it "would be a catastrophe" if the deal does not get congressional backing.