The White House has confirmed that Trade Representative Robert Lighthizer will lead the new round of trade talks with China, taking over from Treasury Secretary Steven Mnuchin. This is an important indication that both sides (well mainly China), are ready to put promises into words and then actions. Lighthizer is the only one who knows how to work out a trade agreement. Without him, it’s just high level “talks”.
White House trade adviser Peter Navarro said that Lighthizer is “the toughest negotiator we’ve ever had at the USTR and he’s going to go chapter and verse and get tariffs down, non-tariff barriers down and end all these structural practices that prevent market access.”
Separately, White House economic advisor Larry Kudlow said China is going to work on the reforms promised “immediately”. Kudlow acknowledged that “The history here with China promises is not very good. And we know that.” However, Kudlow also said “President Xi has never been this involved”, which is a positive development to him. And he added, “we expect those tariffs to fall to zero.”
Kudlow, Mnuchin and Lighthizer held private meetings in Argentina with China’s Vice Premier Liu He. Kudlow said Liu promised that China will act quick on the commitments. And Kudlow added, “They cannot slow walk this, stall this, meander this. Their word: ‘immediately.'”
