WTO paves way for cheaper tech products by finalising list of tariff-free products in US$1.3 trillion deal

The World Trade Organisation finalised a list of 201 information technology products to be freed from import tariffs in a US$1.3 trillion deal on Friday, but said it was still short of the critical mass of countries needed to put it into force.

The first global tariff-cutting deal in 18 years will mean consumers should pay less for products such as computers, touchscreen devices, games consoles and hi-fi systems, while companies will see cuts in the cost of machine tools and components, giving a boost to economies globally.

"Today’s agreement is a landmark," WTO director-general Roberto Azevedo said in a statement, adding that the value of trade involved was worth 7 per cent of the global total, more than world trade in cars.

The product list includes new-generation semiconductors, GPS navigation systems, medical products which include magnetic resonance imaging machines, printed circuits and satellites, the WTO said.

Once in force, the agreement will update the WTO’s 18-year-old Information Technology Agreement and add the 201 products to the list of goods covered by zero-tariff and duty-free trade.

Removing tariffs on trade worth US$1.3 trillion is expected to give a US$190 billion boost to the world economy.