"We, the undersigned organizations, strongly support the Agreement and look forward to the benefits to two-way trade, investment, and growth in both countries that will result from its full and timely implementation."
July 6, 2020
Dear Secretary Mnuchin, Ambassador Lighthizer, and Vice Premier Liu:
The US-China Phase One Trade Agreement was a significant achievement in ongoing efforts to advance a more balanced and mutually beneficial US-China economic and commercial relationship. We, the undersigned organizations, strongly support the Agreement and look forward to the benefits to two-way trade, investment, and growth in both countries that will result from its full and timely implementation. We also believe that successful implementation of Phase One will be critical to subsequent negotiation of a Phase Two Agreement.
We are encouraged by the progress achieved to date on important aspects of implementation. We also appreciate ongoing efforts by both governments to monitor and promote fulfillment of the terms of the Agreement, including in the following areas:
- China’s release of its promised Intellectual Property Action Plan (“2020-2021 Plan for Promoting the Full Implementation of the ‘Opinions on Strengthening the Protection of Intellectual Property’”), which includes commitments to prohibit forced technology transfer; improve the legal environment for protecting trade secrets; combat piracy and counterfeiting; enhance trademark and copyright enforcement; provide effective and time-bound resolution of patent disputes; create a patent linkage system; and strengthen judicial procedures and administrative enforcement;
- China’s removal of market access barriers for some US fruits and grains and for nearly all US beef products; the expansion of its list of US facilities eligible to export beef, pork, poultry, seafood, dairy, and infant formula to China; and the adoption of new domestic standards for dairy powder that will allow imports from the United States; China’s commitment to remove equity caps and joint venture requirements on foreign financial service providers, including asset management, securities and futures, banking, credit rating agencies, and insurance firms, some of which have been removed in the new national Negative List; and
- The lowering of tariffs and the granting of tariff exclusions by both governments.
Given the progress to date and the significant commitments in the Agreement that would benefit the US and Chinese economies as the global economy recovers from COVID-19 disruptions, US industry fully supports the continuation and full implementation of the Phase One Agreement.
To realize the full potential of the Agreement and advance constructive bilateral engagement, we encourage both sides to redouble efforts to implement all aspects of the Agreement, including purchases of US manufactured goods, energy products, services, and agricultural goods, where implementation appears to be lagging.
Acknowledging the obvious disruptions stemming from the COVID-19 pandemic, significantly increased Chinese purchases in these areas over the coming weeks and months would be mutually beneficial, demonstrate the significant benefits of the Phase One Agreement, and help to support the important goals of the China International Import Expo (CIIE). We strongly support and encourage increased efforts by the Trump Administration to work with the US business community and stakeholders in China to increase export promotion efforts at this critical time.
Meeting the global public health challenges from COVID-19 and restoring growth to the global economy will depend in part on both countries working together to fully implement the mutually beneficial outcomes of the Phase One Agreement. Thorough and timely implementation of Phase One commitments is also the most direct and achievable path to removal of tariffs—and to avoid application of new ones—on both sides, which the US business community strongly supports. In the spirit of mutual benefit and to accelerate global economic recovery, our organizations offer the recommendations in the enclosed Annex to the two governments to accelerate the realization of concrete outcomes from the Phase One Agreement.
We also hope that successful implementation of the Phase One Agreement will create the necessary conditions for the start of Phase Two negotiations as soon as possible that can address important outstanding issues, including subsidies, cybersecurity, digital trade and data governance, competition policy, regulatory data protection, and standards setting, among others. Continued negotiations that lead to agreements that are meaningfully implemented will bring mutual benefits to both countries, and support a more balanced and durable bilateral commercial relationship.
Amid increasing bilateral tensions across the relationship, working together to improve trade and grow commerce can provide important benefits to both economies and help to improve relations. We appreciate the efforts both governments have put into implementation to date, and believe that comprehensive and timely action on the recommendations would give a substantial boost to efforts on both sides to achieve Phase One outcomes, pave the way to Phase Two negotiations, and contribute to healthier and more stable US-China relations.
Advanced Medical Technology Association (AdvaMed)
Aerospace Industries Association
American Apparel & Footwear Association (AAFA)
American Automotive Policy Council (AAPC)
American Chamber of Commerce in South China
American Chamber of Commerce in Southwest China
American Chamber of Commerce in the People's Republic of China
American Chemistry Council (ACC)
American Council of Life Insurers (ACLI)
American Petroleum Institute (API)
American Property Casualty Insurance Association
American Trucking Associations
Association of Equipment Manufacturers (AEM)
Biotechnology Innovation Organization (BIO)
BSA | The Software Alliance
Center for Liquified Natural Gas (CLNG)
Coalition of Services Industries (CSI)
Computing Technology Industry Association (CompTIA)
Consumer Technology Association (CTA)
Information Technology Industry Council (ITI)
Interstate Natural Gas Association of America (INGAA)
LNG Allies, The US LNG Association
Medical Imaging and Technology Alliance
Motion Picture Association of America
Motor & Equipment Manufacturers Association
National Foreign Trade Council
National Milk Producers Federation
National Retail Federation
National Turkey Federation
Pharmaceutical Research and Manufacturers of America (PhRMA)
Semiconductor Industry Association
Telecommunications Industry Association (TIA)
The Society of Chemical Manufacturers and Affiliates (SOCMA)
US Chamber of Commerce
US Dairy Export Council
United States Council for International Business
United States Information Technology Office
USA Poultry & Egg Export Council
US-China Business Council