President of the World Trade Center Los Angeles (WTCLA), Stephen Cheung, said that the phase-one of the economic and trade agreement announced by the United States and China is “very encouraging.”
Cheung further pointed on how the implementation and escalation of tariffs in over a year have affected the economic relationship between the two superpowers.
“Exports have declined for the last 12 months at the Port of Los Angeles while imports have decreased 12 per cent in November 2019 compared to the same month last year,” said Cheung was quoted as saying in a Xinhua article on Saturday.
“The Port of Long Beach, which makes up the other port in the San Pedro Bay Port Complex, has seen its total volume decrease 5 per cent so far this year,” he added.
The WTCLA president further noted that, “Scenario has created an increase in prices for capital inputs and final goods, and less ships have meant less job opportunities for workers in the international trade industry,” adding that both sides will undoubtedly benefit as tariffs are phased out.
“The Chinese market is crucial to the future success of Los Angeles companies, especially since Los Angeles produces a vast amount of high-knowledge and complex goods and services that are desired by China’s growing consumer base,” said Cheung.
Speaking on the trade-talks Cheung said, “As the nation’s largest trading hub and gateway to US-China trade, no region is more positively or negatively impacted than Los Angeles. The news of a trade deal brings some relief to this environment, and we at the WTCLA are hopeful this deal will be formalized soon.”
The WTCLA is the leading promoter and facilitator of global connections and inbound foreign direct investment of Los Angeles County. It also has led or assisted in the attraction of more than US $1 billion of foreign investment into the region.
(With input from agencies)