Flat-panel standoff between Beijing and Seoul threatens tech trade pact progress
China is resisting South Korean pressure to include the displays on a list of zero tariff goods
A stand-off between China and South Korea over flat-panel displays is imperiling trade negotiations in Geneva to expand the scope of tariff-free information and communications technology products.
South Korea, home to the world's biggest manufacturers of liquid crystal display screens for televisions, is pressing for the inclusion of flat-panel displays in the current round of talks for a broader Information Technology Agreement (ITA), a plurilateral tariff-cutting pact launched in 1997 under the World Trade Organisation.
"It seems this issue is the most serious obstacle to an agreement on expanding the product scope of the ITA," a source familiar with the negotiations said. "China remains adamant that flat-panel displays cannot be added to the ITA list for zero tariffs because that would effectively increase the cost of the agreement to the country."
Flat-panel displays were not part of the bilateral deal on the ITA reached between the United States and China on the sidelines of the Asia-Pacific Economic Cooperation summit in Beijing last month.
Efforts to resolve the deadlock between China and South Korea over flat-panel displays were expected to be made during an ITA committee meeting, chaired by the European Union, scheduled for yesterday.
The Information Technology and Innovation Foundation, a US think tank, has estimated that an expanded ITA would result in US$6.4 billion in foregone tariff collections from information and communications technology products now being considered for zero tariffs.