Phase 1 set out a plan for China to buy $12.5 billion in more agricultural products than they bought in 2017, which was chosen as the basis since it was the last „normal” year of trade between China and the U.S. before the two nations began negotiating retaliatory tariffs. In 2017, the United States exported $20.8 billion worth of products covered by the agreement to China. This would mean that in 2020, China would have to import $33.4 billion worth of U.S. agricultural products to fully meet the terms of the deal. This represents a 60% increase over 2017 exports. The agreement also established that in 2020 and 2021, total U.S. agricultural exports to China will increase by $73 billion, or $80 billion in Chinese imports as soon as shipping and freight are added. On January 15, 2020, the United States and China signed a historic and enforceable agreement on a Phase One agreement. The agreement calls for structural reforms and other changes to China`s economic and trade regime. The first phase economic and trade agreement contains a chapter on intellectual property (IP) that strengthens the protection and enforcement of intellectual property in China. The United States and China have reached a historic and enforceable agreement on a phase one agreement that will require structural reforms and other changes to China`s economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, currency and currency. The Phase 1 agreement also includes China`s commitment to make significant additional purchases of U.S.
goods and services in the coming years. It is important that the agreement creates a strong dispute settlement system that ensures swift and effective implementation and enforcement. The United States has agreed to substantially amend its Section 301 tariff measures. Everyone will remember 2020 for many reasons. For those around the world, the phase one agreement between the United States and China will certainly be one of them. On 15 January The agreements signed on 14 January 2020 and entered into force on 14 February 2020 set ambitious targets for US agricultural exports to China. Now that all the data is available for the 2020 calendar year, it`s time to see what went well and what didn`t. According to USDA data, total exports of agricultural and related products covered by the agreement reached about $27.2 billion in 2020, an increase of $6.5 billion from 2017, an increase of 30 percent. This means, of course, that the export target of $33.4 billion has not been met by more than $6 billion.
In short, we only reached the target of $12.5 billion relative to the 2017 export level halfway through. Despite the missed target, 2020 was a record export in nominal dollars of agricultural products covered by the agreement. The first phase economic and trade agreement covers certain acts, guidelines and practices of China identified in the Section 301 investigation on technology transfer, intellectual property and innovation. The agreement begins to rebalance our trade relations and achieves reasonable and fully enforceable commitments to resolve structural problems. The agreement prohibits coercing or pressuring foreign companies to pass on their technology as a precondition for market access, administrative authorizations or obtaining benefits. The agreement also requires that any transfer or licensing of technology be based on market conditions that are voluntary and reflect mutual agreement. We are taking an important step — which has never been done before with China — towards a future of fair and reciprocal trade, as we sign the first phase of the historic U.S.-China trade agreement. Together, we are correcting the injustice of the past and creating a future of economic justice and security for American workers, peasants, and families.