Trade Agreements And Trade Barriers With China

983 WordsDec 14, 20144 Pages
Trade Agreement and Trade Barriers with China and the United States On July 7, 1979, the governments of the United States and China signed the People’s Republic of China Trade Relations Agreement. This agreement basis is to “further economic and trade relations between both countries on the basis of the principles of equality and mutual benefit as well as nondiscriminatory treatment” (United States Department of Commerce ). Trade agreements are between governments on imports or export products they have an agreement to trade on. Part of the agreement will be what type of tariff if any will be used. The three types of trade agreements are unilateral, bilateral and multi-lateral. Unilateral is one countries restrictions and no others agree. Bi-lateral is agreed upon by two countries and multi-lateral is between three countries. Not all are easy to obtain but the US does have several bilateral trade agreements (Amadeo, 2014). The agreement between the governments of the United States and China is considered to be a Bi-lateral agreement. With this agreement there are several types of tariffs that can be used and is determined by the product. A tariff is a tax placed on particular imported or exported goods and services. There several types of tariffs; specific tariffs, ad valorem tariffs, licenses, import quotas, voluntary export restraints and local content requirements. Governments use these tariffs for protecting domestic employment, new businesses against competition,
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