Fox Business | 2 November 2019
Navarro: US-China trade deal will take 3 phases
By Blair Shiff
White House trade adviser Peter Navarro told FOX Business’ "Bulls & Bears" the United States’ trade deal with China will require three phases.
"To be clear, we’re going to need three phases of the deal to deal with all the seven, what I call, structurally deadly sins in China," Navarro told FOX Business’ David Asman on Friday.
Navarro explained the deal needs to happen in three phases also because of the enforcement mechanism that would allow the U.S. to file claims against China if they violate the deal.
"And, if it’s not to our satisfaction, we will be able to basically put in remedies without fear of retaliation by China," Navarro said. "That’s the essence of the enforcement mechanism."
He said without that enforcement mechanism, America has no deal with China.
Navarro went on to praise the Section 301 authority Congress gave to President Trump.
"It’s perfect for dealing with China because it allowed us to defend ourselves against China’s theft of our technology and IP," Navarro said referring intellectual property.
Navarro reminded Asman about another big trade deal that’s still in limbo: the United States-Mexico-Canada Agreement, which he reiterated is "twice as big as the China deal." That deal would replace the North American Free Trade Agreement, which was ratified during the Clinton Administration, once it is ratified.
"It’s five times the exports in the scheme of things," Navarro said. "It’s far more important to the welfare of this country, and Nancy Pelosi, if she insists on being the ringmaster of the circus designed to overthrow a duly elected president they can’t beat, that will be a signal failure of the political process in this country and set us off on a course which was very fraught with peril."