WTO inks IT deal

WTO member states on Friday agreed to abolish duties on 201 technology products, ranging from advanced computer chips to GPS devices, printer cartridges and video game consoles.

"Today's agreement is a landmark," WTO Director General Roberto Azevedo told journalists.

The accord marked the organization's first tariff-reducing deal in almost two decades and would serve as an expansion of the 1997 Information Technology Agreement, (ITA) which included 80 WTO members.

Officials said the updated accord covered products generating $1 trillion (911 billion euros) in annual global revenues, equal to the trade in iron, steel, textiles and clothing combined, the WTO stated.

The removing of costly tariffs is expected to give the global economy a $190 billion (173.1 billion-euro) boost.

"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," said EU Trade Commissioner Cecilia Malmström.

Far-reaching accord

But five of the 54 WTO members that negotiated the deal did not end up signing it, leaving the pact short of the quorum it needed to bring it into force in all 161 WTO countries.

Although not all 161 member countries chose to sign the deal, it will benefit all nations as it eliminates the tariffs on products no matter which WTO country they come from.

"The deal will open markets, create jobs and spur economic growth around the world, as well as bring down costs for consumers," said the president of the Information Technology Industry Council trade group in Washington, Dean Garfield.

Negotiators will still have to sort out some technical details until December when WTO members are due to meet in Nairobi, Kenya.

hg/pad (AFP, dpa)