Trillion-euro global high-tech trade deal agreed | WPN World People News

The European Union, the United States, China and the vast majority of the World Trade Organization (WTO) members that were participating in the negotiations agreed on 24 July to eliminate custom duties on 201 high-tech products. The extension of the 1996 Information Technology Agreement (ITA) is the biggest tariff-cutting deal in the WTO in almost two decades. The agreement initiated and brokered by the EU, will benefit both consumers and firms alike by removing customs duties on a wide range of goods, including medical equipment, video games and consoles, home hi-fi systems, headphones, blue-ray/DVR players, semi-conductors, and GPS devices. All in all, the deal will cover €1 trillion in global trade, covering close to 90% of world trade in the products concerned. A total of 54 WTO members[1] negotiated the expansion of the ITA. A limited group of countries is expected to confirm its participation in the coming days.

"This is a great deal for consumers, and for companies big and small" said EU Trade Commissioner Cecilia Malmström. "We’ve worked hard to broker this compromise between different countries and to find the best solutions for Europe. This deal will cut costs for consumers and business – in particular for smaller firms, which have been hit especially hard by excessive tariffs in the past. Just as important, this deal shows how we can use the EU’s trade policy to encourage innovation in the IT sector – a part of our economy that is crucial for Europe's growth and for creating jobs."

The Commissioner added: "This major achievement adds much-needed momentum to the World Trade Organization. It clearly shows that countries around the world can work together to achieve solutions that benefit everyone. I count on other countries joining soon. And looking ahead, this agreement is an inspiration to step up our efforts in the run-up to the WTO ministerial in Nairobi in December. That will be the 'make or break' meeting for the Doha development round – it will be the last chance to conclude it."

The new, expanded ITA agreement concluded on 24 July will reduce the costs for consumers and for manufacturing IT products in Europe. It will offer new market access for many of Europe's high tech companies – some of which are leaders in their fields – and encourage innovation by simplifying access to state-of-the-art technology. As such, it will contribute to the further development of the digital economy in the EU.

Source: European Commission