WTO Info Tech Tariff Negotiations Suspended Due to China’s Current Position, USTR Says
Negotiations to expand the Information Technology Agreement (ITA) in Geneva were suspended on July 17 because of China’s reluctance to cut duties, U.S. Trade Representative Mike Froman said. Froman said that “a diverse group of Members participating in the negotiations” had determined that China’s current position made further progress impossible (here). "We are hopeful that China will carefully consider the concerns it heard this week from many of its negotiating partners, and revise its position in a way that will allow the prompt resumption of the negotiations.”
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In a statement released by the Consumer Electronics Association (CEA), vice president of international trade Sage Chandler said that the ITA, which has not been updated since its creation, could remove tariffs on an “estimated additional $800 billion in information and communication technology trade globally” if expanded (here). Chandler called the expansion to include modern tech products “vital,” and the World Trade Organization (WTO) said that the ITA’s expanded coverage “should reflect the realities of today’s trade (here).”
However, the CEA said China asked for the removal of over 100 products from negotiations, which “cannot be viewed as a meaningful effort.” Chandler said the list of products that China wishes to exclude from lower tariffs should be “serious but limited,” adding that “reciprocal treatment is required” for participation in negotiations. CEA said that no date to resume discussions has yet been announced but urges negotiations to conclude no later than the Ninth WTO Ministerial Conference in December.