After months of negotiations, the United States and China have come to an initial agreement on trade. The U.S. Trade Representative announced a “phase one” deal on December 13, 2019, which will have significant implications for both countries and global commerce.

Under the agreement, China has agreed to purchase $200 billion worth of U.S. goods over the next two years. This includes $40-50 billion in agricultural products, $75 billion in manufactured goods, $50 billion in energy products, and $40 billion in services. In addition, China will enforce intellectual property protections and refrain from currency manipulation.

The U.S. has agreed to reduce tariffs on $120 billion worth of Chinese goods, which were initially imposed in 2018 as part of the ongoing trade war between the two nations. However, tariffs will remain on $250 billion worth of Chinese imports, and a planned tariff increase scheduled for December 15, 2019, has been canceled.

While the agreement is a welcome sign of progress in the trade negotiations, it is important to note that it only covers a portion of the issues at hand. The U.S. and China still need to address more complex issues, such as state-sponsored industrial subsidies and technology transfer.

Furthermore, the agreement has been met with criticism from some in Congress, who argue that it does not go far enough in addressing China`s unfair trade practices. Others argue that the agreement will not do enough to address China`s human rights abuses and crackdown on democracy in Hong Kong.

Despite the criticisms, the phase one agreement is a significant step forward in the U.S.-China trade relationship. It provides a framework for future negotiations and may help to stabilize global markets in the short term. It remains to be seen how both countries will implement the agreement and whether it will lead to a broader resolution of the trade war.