China's Ministry of Commerce lauded the steps taken to finalise an international agreement that aims to lift the majority of tariffs on IT products within three years, with reductions starting as soon as 2016.
The ministry’s statement, on Saturday, came after WTO members, representing major exporters of information technology products, had agreed to eliminate tariffs on 201 new products.
As per the WTO, the agreement deals with goods worth 1.3 trillion US dollars, accounting for around 7% of global trade volume. The terms of the agreement will be formally circulated to the full membership on July 28.
The ministry said the negotiations will further promote global trade and economic growth, and also inject new vitality into multilateral trade negotiations.
“This step forward cleared the way for ministers from the participants to conclude their implementation plans in Nairobi in December 2015 when the WTO holds its 10th Ministerial Conference…If the negotiations are concluded as scheduled, they will be the only completed WTO negotiations on market access in recent years," according to the Ministry.
The negotiators are seeking to update the existing 1996 Information Technology Agreement (ITA), which is seen as outdated.
The new agreement will cover an additional 201 products, including new generation semi-conductors, GPS navigation and medical equipment, as well as machine tools for manufacturing printed circuits, telecommunications satellites and touch screens.
Not every WTO member has taken part in the negotiations, but all 161 member states will benefit from duty-free market access.
"By keeping the markets open, we can create a good environment for international cooperation on the basis of complementary advantages. With this new platform, we will be lifted together to a higher ground in future development, instead of dwelling on our own limited gains,” explained Bai Ming, a senior researcher at the Chinese Ministry of Commerce.
