Wendy Cutler comes from a three-decade career in shaping US trade policy. She worked in the Office of the US Trade Representative from 1988 to 2015 before moving into the think tank space. Today, she is vice-president of the Asia Society Policy Institute.
Cutler uses this accumulated experience to offer a view on the fractious US-China trade relationship at a time when trade ties remain tense despite landmark talks between the two powers, followed by a sharp reduction in tariffs, earlier this month.
With China and the US agreeing to a truce, what steps do you expect the two sides to take next so they can lock in a tariff-free deal within 90 days? What will top the two sides’ agendas, and how likely are they to reach a lasting agreement?
The US-China tariff truce, announced earlier this month, exceeded expectations with each side lowering its tariff rates by 115 per cent for a 90-day period. The tariffs were taking a serious toll on both economies and ultimately led both sides to the negotiating table. But 90 days is an extremely short window to find landing zones on outstanding issues of concern.
Accordingly, we should expect more ups and downs in bilateral relations in the coming months.
It appears that progress is already being made to address US concerns on fentanyl. However, with respect to other matters of concern to the US, like excess capacity, subsidies and transshipments, negotiators will face enormous challenges finding common ground, particularly in a three-month period.
