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President Donald Trump’s phase one deal could move the world closer to free trade and ultimately save the World Trade Organization.

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The U.S. goods will be exempt for one year starting Feb. 28

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The US forcibly tying Chinese import requirements to the trade deal risks violating global trading rules, distorting and diverting world trade, says an observer.

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China, together with some other countries, has been removed from the United States' list of 'developing' nations and considered as a 'developed' country when it comes to international trade, according to a recent notice issued by the Office of the US Trade Representative (USTR).

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Falling one place to 11th in the global index of emerging logistics markets, Vietnam was still seen as a clear winner in the US-China trade war.

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China will grant exemptions on retaliatory duties imposed against 696 U.S. goods, the most substantial tariff relief to be offered so far, as Beijing seeks to fulfill commitments made in its interim trade deal with the United States.

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China has approved the import of all poultry products from the United States, the Ministry of Agriculture and Rural Affairs said on its website on Monday, including breeding birds in addition to poultry meat approved late last year.

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The “phase one” U.S.-China deal that takes effect today could bring relative peace on the bilateral trade front this year as President Donald Trump runs for reelection. But while much of the attention will be on how close China comes to meeting a commitment to buy an additional $200 billion worth of goods over the next two years, the agreement also contains a number of deadlines for China, and to a lesser degree, the United States, to take regulatory actions to pave the way for increased trade.

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The US-China Phase 1 trade deal slapped huge commitments on China yet did not remove many imposed tariffs and will be challenging to implement amid a coronavirus outbreak, says Bert Hofman.

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Chinese President Xi Jinping (R) and US President Donald Trump attend their bilateral meeting on the sidelines of the G20 Summit at Osaka on June 29, 2019.

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