First Things First

Trade Wins Bring Certainty for Business

2020 is off to a good start for business with two big trade wins, reducing uncertainty for businesses of all sizes.

U.S. and China sign Phase 1 agreement

First, President Trump and Chinese Vice Premier Liu He signed a “Phase 1” trade agreement, signaling a roll back in the trade conflict between the U.S. and China.

The U.S. will cancel planned new tariffs on Chinese imports and reduce some existing tariffs. In exchange China agreed to purchase more agricultural, manufactured, and energy products, as well as services. The agreement also contains important commitments by China to expand market access for agriculture, financial and other sectors, strengthen IP protection and enforcement, and address unfair technology transfer practices.

“This agreement signifies a new chapter in U.S.-China relations. When fully implemented, China’s commitments will create a better environment for U.S. exporters and investors and begin the process of rebalancing the economic relationship between the United States and China,” said U.S. Chamber CEO Tom Donohue. “We hope this deal will usher in a new era of trust between both countries and pave the way for Phase 2 negotiations to begin in a timely manner.”

Senate passes USMCA

And yesterday, the Senate passed the United State-Mexico-Canada Agreement (USMCA) on a bipartisan basis, preserving and strengthening the ties between two of our biggest trading partners.

It contains updated rules on digital trade, non-tariff barriers, services, and other areas, modernizing North American trade rules.

Executive Vice President and Chief Policy Officer Neil Bradley told CNBC, "We restored certainty for 12 million Americans who rely on trade between the U.S., Canada, and Mexico for their jobs, including 120,000 small businesses.”

As noted in Tom Donohue’s State of American Business address, 2020 will be a year of “meaningful action.” Both wins took a lot of work, with the U.S. Chamber rallying the businesses community and advocating to Congress and the administration.

But that hard work paid off, and we’ll continue fighting for policies that drive growth and support jobs.

Caught My Eye

Because of innovation in the energy sector, the U.S. has record levels of oil and natural gas reserves, the Energy Information Administration found.

Looking Ahead

February 28, 2020: The U.S. Chamber Foundation will host the Early Education Summit: Economic Impact on the States. It gathers early education and business communities together to discuss the impact of how childcare challenges affect a state’s workforce participation and economy.

March 5, 2020: The U.S. Chamber of Commerce's annual Aviation Summit will bring together a lineup of well-respected leaders in aviation to discuss the many challenges and opportunities facing the aviation industry, including rich conversations on an international flight, advancements in aviation technology, and opportunities and challenges facing the field.

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