More tariff cuts on high-tech trade

The World Trade Organisation (WTO) has expanded the Information Technology Agreement (ITA) to include additional tariff cuts on high-tech trade.

“We are confident that all parties will now give formal approval to their participation in what would be the first tariff-elimination deal at the WTO in 18 years,” said Michael Froman, US trade representative and a lead negotiator at the ITA discussions in Geneva.

Since the ITA went into force in 1997, global trade covered by the agreement has more than tripled, increasing to more than US$4 trillion in annual trade.

Despite extensive advances in technology, however, the product scope of the agreement has never been expanded.

Now, more than 200 tariff lines will be reduced to zero under an expanded ITA.

Medical equipment, GPS devices, video game consoles, computer software and next generation semiconductors are among the high-tech products that will see tariff elimination.