FILE PHOTO: U.S. Treasury Secretary Steve Mnuchin speaks about sanctions against Turkey at a news briefing at the White House in Washington, U.S., October 11, 2019. REUTERS/Yuri Gripas/File Photo

WASHINGTON (Reuters) - Completion of the Phase 1 U.S.-China trade deal and a new North American trade agreement will boost the U.S. gross domestic product (GDP) by a combined 50 to 75 basis points, U.S. Treasury Secretary Steven Mnuchin told Fox News on Wednesday.

“When we look at this (U.S.-China deal) and we look at the USMCA together, I think you’re going to see a good 50 to 75 basis points combined,” Mnuchin said. “This will be a terrific offset for what’s been the slowdown due to Boeing and the 737 MAX.”

Studies suggest the production halt of the 737 MAX could shave 0.5% from U.S. GDP this year.

Mnuchin said the U.S. government would begin work with China on a second phase of the trade agreement, rolling out progress as work was completed on specific issues, such as concerns about Chinese government subsidies to Chinese firms.