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Regional Asian exporters could be 'crowded out' in US-China trade pact

AFP  |  Washington 

A coming trade pact between and could mean US goods will out-muscle regional Asian exporters reliant on sales to China, the warned Friday.

"In the case of an agreement involving managed trade, with committed to import more from the US, reducing imports from elsewhere can be an issue," Changyong Rhee, of the IMF Asia Department, told reporters during the fund's spring meetings with the

"There could be negative impacts on other countries whose exports to would be crowded out by US exports." and have been in talks since the start of the year to resolve their nine-month trade war.

has floated offers to make eye-popping purchases of US agricultural and as a means of cutting its soaring trade surplus with the

has been outraged by the US trade deficit with China, which has increased despite the punishing tariffs he imposed last year on Chinese imports.

Countries such as Vietnam, Thailand, and are crude exporters to China, suggesting they could lose market share should US exports to increase.

Rhee also said Friday that formal bilateral purchase agreement would be a departure from the prevailing rules governing international trade.

"Likewise if the deal involves preferential access for the US to the Chinese markets, this could lead to broader worries about the future of the multilateral trade system," he said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, April 12 2019. 22:05 IST