In US-China Phase 1 trade deal, enforcement may end in 'We quit'

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WASHINGTON: The Trump administration is touting the US-China Phase 1 trade deal's dispute settlement and enforcement mechanism as the major ...

's dispute settlement and enforcement mechanism as the major difference between the 86-page agreement unveiled on Tuesday and past pledges by Beijing to change its trade practices.

But according to the text, if the offending party disagrees with such a result, its only recourse is to quit the agreement. There are no provisions for appeal or levying retaliatory tariffs."If the Party Complained Against considers that the action of the Complaining Party was taken in bad faith, the remedy is to withdraw from this Agreement by providing written notice of withdrawal to the Complaining Party,” the text states.

Trump administration officials insist that they have set up a robust process for resolving disputes, with each country opening an enforcement office to field and review complaints about compliance.

 

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