ITA talks press ahead, despite hurdles to new tech tariff deal

Negotiators in Geneva faced several stumbling blocks yesterday as they entered the final lap in talks for a broader tariff-cutting pact on information and communication technology products, which represent US$4 trillion in annual global trade.

These obstacles included China and Turkey preferring a longer "staging period" to eliminate tariffs on certain products, and Malaysia's excluding video games from a new deal "on moral grounds", according to sources familiar with the negotiations.

Despite those issues, proponents remain confident of expanding the scope of the Information Technology Agreement (ITA) in this round of talks, which runs until Wednesday.

A successful conclusion would mark the first major tariff-cutting deal in the World Trade Organisation in 17 years.

The United States, China and the European Union have agreed to hold a series of bilateral discussions in the city this week to find a compromise on certain outstanding issues, the sources said.

China has asked for a seven-year staging period on more than 20 products, compared with the usual three-year process under the ITA. A staging period means all participants must reduce tariffs in equal rates and at equal times.