Dozens of countries have agreed to abolish duties on more than 200 technology products — from advanced computer chips to GPS devices, printer cartridges and video-game consoles.
The agreement announced yesterday marks the WTO’s first tariff-killing deal in 18 years.
The deal is an expansion of the 1997 Information Technology Agreement (ITA), which includes 80 WTO member countries. The updated accord covers products that generate US$1 trillion in annual global revenue, including US$100 billion a year for US companies.
Photo: AP
That total is equal to global trade in iron, steel, textiles and clothing combined, the WTO said.
US Trade Representative Michael Froman called the agreement “great news for the American works and businesses that design manufacture and export state-of-the-art technology and information products.”
Froman’s office says the deal will support 60,000 US jobs.
Technology manufacturers like General Electric Co, Intel Corp, Texas Instruments Inc, Microsoft Corp and Nintendo Co are among companies expected to benefit from the deal.
“That definitely impacts Intel and that’s important, but also as important are the other technologies that it covers that were not even dreamt of when the original ITA was negotiated,” Intel communications director Lisa Malloy said.
“Things like ... health devices and GPS [are] technologies that semiconductors and Intel hope to power in the years to come.”
Not all 161 WTO member countries signed on to the expanded deal, but all will benefit because it eliminates the tariffs on dozens of tech products no matter which WTO country they come from.
Dean Garfield, president of the Information Technology Industry Council trade group in Washington, said the deal “will open markets, create jobs and spur economic growth around the world, as well as bring down costs for consumers.”
Talks on revising the technology agreement began in 2012. The breakthrough occurred when the US and China worked out most of their differences during Chinese President Xi Jinping’s (習近平) visit to Washington in November last year.
Negotiators still must complete technical details and a timetable for eliminating the tariffs. The work is expected to be completed by the time WTO members meet in Nairobi in December.
Additional reporting by Reuters
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