Talks to expand the product coverage of the WTO’s
Information Technology Agreement (ITA) have been temporarily suspended,
according to a statement released by the US’ top trade official on Wednesday, 17
July.
The negotiations in Geneva have been put on hold
due to differences between China and many of the WTO members involved,
Washington says. The group, which includes the US and EU, has been working to
develop a list of products to add to the agreement for over a year, and had
hoped to complete a final list this month.
“The United States is extremely disappointed that
it became necessary today to suspend negotiations to expand the Information
Technology Agreement,” US Trade Representative Michael Froman
said in a statement. “Unfortunately, a diverse group of members participating
in the negotiations determined that China’s current position makes progress
impossible at this stage.”
Geneva sources speaking to press in recent weeks
had noted that Beijing’s sensitivities regarding certain product lines could
prove difficult to resolve as the group tries to whittle down its draft list to
a consolidated final version.
In an e-mailed statement later on Wednesday, China
stressed that it has taken a “very serious attitude” toward the ITA talks.
“We share the same goal with the rest of the
participants to conclude the negotiations before the Ninth Ministerial
Conference in December,” China said. “After intensive and difficult domestic
consultations, China has added its support to 150 tariff lines, or two thirds
of the proposed products, which is a concrete contribution to the
negotiations.”
Expressing “deep regret” for the decision of other
members to put the talks on hold, Beijing said that resuming the talks “should
not be conditioned upon China’s supporting its list of sensitive products.”
However, Washington has said that it is “hopeful”
that Beijing will take into account the concerns of its negotiating partners,
and urged the Asian country to “revise its position in a way that will allow
the prompt resumption of the negotiations.”
Bali in the background
The ITA is a plurilateral
pact under the aegis of the WTO that eliminates tariffs on trade in information
and communication technology (ICT) products. Forty-nine of the WTO’s 159
members have signed onto the ITA, if counting the EU as one member, though the
benefits extend to the full WTO membership. Of these 49, over 20 are currently
involved in the expansion talks.
The original pact dates back to 1996. Countries
involved in the expansion negotiations have said that the agreement must be
updated to reflect the realities of today’s trade, given the development of new
technology products over the last 17 years.
With the WTO’s Ninth Ministerial Conference in the
Indonesian province of Bali scheduled for early December, many hope that a
revised ITA could be one concrete outcome to present at the high-profile event.
Finalising a list of products is a key step in this direction, followed by
completing the legal terms of the agreement and getting any ITA members not
currently involved in the talks on board.
The USTR statement gives no indication of when the
ITA expansion negotiations might resume. However, with the WTO set to go on its
annual August break in a matter of weeks, the earliest date for new discussions
would likely be September.