Korea confirms list of 201 high-tech products subject to WTO deal

The deal is an expansion of a pact reached in 1996 by 81 WTO members, known as the Information Technology Agreement (ITA).

The Taiwan Electrical and Electronic Manufacturers’ Association said the exclusion of flat panels from the deal would affect development of the nation’s panel industry, especially as Beijing and Seoul inked a free-trade agreement early this year that is to gradually eliminate export duties for panel products.

“Eliminating tariffs on trade of this magnitude will have a huge impact”, he continued.

The is equal to global trade in iron, steel, textiles and clothing combined.

The deal will eliminate major tariff on the 201 products within three years from 2016.

Friday’s deal will reduce tariffs to zero on products that now make up more than 1.3 trillion US dollars each year in global trade, about seven percent of total world trade volume.

The existing 1996 IT agreement was seen by industry and policy makers as woefully out of date as it did not cover devices and products invented since then.

“Exporting members will submit a draft schedule on the terms to other members in October and ahead of the next ministerial conference at Nairobi in Kenya in December”, Azevedo added.

Indeed, the ITA has been celebrated as an example of the kind of trade agreement that is a win-win scenario for both industrialized and developing countries alike.

This landmark agreement was expected to significantly benefit major IT product exporters like the Philippines as it would support lower prices, create jobs and help boost economic growth globally, according to the WTO.

So a significant step towards more liberalised trade has been taken.

Director-General Yang Jen-ni (楊珍妮) said that as most ITA members have agreed to the additional items, it is unlikely that Taiwan will continue to insist on the addition of flat panels.

Accordingly, this month’s accord is the first time that negotiating parties have reached agreement, even in principle, as to the products that should be added to the ITA.

Furthermore, the agreement also sets out a commitment to addressing other barriers to trade in the IT sector, while maintaining a role-call of products that could be included on the list later down the line.