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On 12 December 2014, the Information Technology Agreement (ITA) negotiators failed to reach agreement over coverage. Although many countries reportedly were very flexible, the final deadlock appeared to involve liquid crystal display (LCD) screens. According to news reports, China wanted all parties to accept the terms that it had worked out with U.S. negotiators which allowed the previously deadlocked talks to resume. Those terms excluded LCDs from coverage. However, according to the reports, S. Korea, a large LCD producer, insisted on them being included. After eight days, China and S. Korea were unable to iron out their differences. WTO Director General Azevêdo said: “The participants have significantly reduced the gaps on expanding the coverage of the ITA in recent days but unfortunately it has not been possible to finalise the negotiations this week. I urge members to remain actively and constructively engaged as we try to bridge the gaps in these negotiations.” Another round of negotiations in early 2015 is possible.
The WTO estimates that an expanded ITA would cut tariffs on approximately US$ 1 trillion of trade each year and would therefore provide a significant economic boost around the world. Crucially, it would benefit all WTO members, not just the ITA participants, because the tariff cuts would be applied on a multilateral basis. |
