Geneva trade talks on cutting technology product tariffs collapse over China-South Korea spat

Trade talks in Geneva have failed to reach a deal to expand the scope of tariff-free ICT (information and communications technology) products, weighed down by a deadlock between China and South Korea over flat-panel displays.

This marks the third time in the past two years that talks have collapsed for a broader Information Technology Agreement (ITA), a plurilateral tariff-cutting pact launched in 1997 under the World Trade Organisation.

"We missed a big opportunity. All of us will need to go back to our capitals and reflect hard on the next steps," Michael Punke, the US ambassador to the WTO, said in a statement released by the Office of the United States Trade Representative.

An expanded ITA would remove tariffs on about US$1 trillion (HK$7.75 trillion) in annual global sales of ICT products, as well as increase annual global gross domestic product by US$190 billion, according to industry estimates.

ITA negotiations involving 54 participating economies resumed at the WTO headquarters in Geneva on December 3, following a bilateral agreement between the US and China about that pact on the sidelines of the Asia-Pacific Economic Cooperation summit last month.

"Through the consultations over the last few weeks, it became clear that certain members had important interests that were not fully captured by the bilateral agreement," Punke said.