China reaches agreement with USA to phase out tariffs

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Stocks climb to new highs after a USA official confirms that part of the phase-one trade deal with China includes removing some tariffs.

Investors gave credence to the prospects for an agreement, despite many false dawns in the last six months, after Beijing's announcement was not denied by the White House.

If a phase-one deal is signed, China and the US should remove the tariffs at the same time and by the same amount, Mr. Gao said, adding that it was an important condition for a deal.

On Tuesday, the UNCTAD released a report titled "Trade and Trade Diversion Effects of United States Tariffs on China", which decried usa tariffs on China as "economically hurting both countries".

The ministry spokesperson said that both sides were closer to a so-called "phase one" trade agreement following constructive negotiations over the past two weeks.

More complicated issues would be tackled in later rounds of negotiations, he said.

"This is an important condition for reaching an agreement", he said.

Meanwhile, U.S. West Texas Intermediate crude futures were at $56.91 a barrel, up $0.56, or about 0.99%.

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Removing tariffs "will help stabilize market expectations, benefit the economies of the two countries and the world economy, benefit producers, and benefit consumers", the spokesman said.

In what could be another gesture to boost optimism, China's state news agency Xinhua reported late on Thursday that the Chinese customs and Ministry of Agriculture are considering removing restrictions on USA poultry imports.

China has banned all USA poultry and eggs since January 2015 due to an avian influenza outbreak. However, the organization acknowledged that the trade diversion effects have increased imports from nations not directly engaged in the trade war and brought "substantial benefits" to Taiwan, Mexico, and the European Union.

Information reviews stated Beijing needs 15% tariffs imposed in September on $125 billion of Chinese language imports eliminated earlier than it would make a proper dedication. As part of that truce, they halted further tariff hikes.

While the current talks were considered on track and ready to soon be signed off by Donald Trump and Xi Jinping, the removal of some tariffs had been a key stipulation by China.

A senior official of the Trump administration also told Reuters on anonymity that there is also a chance that the "phase one" agreement may not be reached. Trump is likely to attend a North Atlantic Treaty Organisation summit from December 3-4, the official said.

In this March 29, 2018, file photograph, Chinese Ministry of Commerce spokesman Gao Feng listens to a reporter's question during a press meeting at the Ministry of Commerce in Beijing.

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