The European Union will file a lawsuit with the World Trade Organization (WTO) against the “Phase One” trade agreement between the United States and China in the event that consequences of the deal will negatively affect European companies, EU representative in China Nicolas Chapuis told reporters in Beijing on Friday.
“In our opinion, quantitative indicators (from the agreement) will be contrary to WTO rules if they lead to distortions in trade relations. If it comes to that, we will resort to the WTO to resolve the issue,” Western media quoted him as saying. As Chapuis noted, during the meeting at the PRC Foreign Ministry, he received assurances from the Chinese side that “the US-China agreement will not harm European business in any way.
”However, Chapuis assured that the EU will oversee the implementation of the Washington and Beijing accords.
On Wednesday, Donald Trump and China Vice Premier Liu He signed the agreement which immediate consequences include additional China imports from the US aimed at correcting heavy trade imbalance between the two countries.
The agreement outlines the plan of additional China purchases from the US in four key trade categories: manufactured goods, energy, services and agriculture worth $200 billion/year (compared to 2017 “pre-war” level). According to media reports, in exchange for this, the United States will cancel existing tariffs and planned tariffs for $160 bn. consumer goods import from China.
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