The US has reached an agreement with China to progress on eliminating tariffs of US$1 trillion in global sales of information and technology products. The agreement, reached during marathon negotiations at the Asia-Pacific Economic Cooperation summit in Beijing, creates a pathway for a final deal by as soon as December, one that would mark the first major cuts to tariffs at the World Trade Organisation in 17 years. "This is encouraging news not just for the US-China trade relationship, it shows that the US and China work together to both advance our bilateral economic agenda, but also to support the multilateral trading system," US Trade Representative Michael Froman said yesterday in Beijing. Froman called the agreement a "breakthrough" and said negotiators would "work quickly" to finalise the terms of a deal to expand what is known as the Information Technology Agreement. US President Barack Obama personally broke the news to fellow world leaders at the summit. "It was Apec's work that led to the Information Technology Agreement, which we are now negotiating to expand," Obama said, according to the White House. The progress represents a victory for Obama as the US tries to advance high priority trade deals during Obama's trip to Beijing. Negotiations continue on the Trans-Pacific Partnership, a 12-nation accord that administration officials have identified as a central component to the "rebalancing" effort Obama has pursued with the Asia-Pacific region. US and Chinese officials also agreed to extend visas for students, tourists and business travellers. Obama said the move would spawn economic gains and stronger inter-personal ties between the world's two largest economies. President Xi Jinping hosted a private dinner for Obama last night. The two will have a formal meeting today. China and the US are among members of the WTO seeking to expand the agreement, signed in 1996 before the introduction of smartphones, tablet computers and other electronics goods. Talks to expand the technology agreement collapsed in 2013 as China proposed to exclude many items from the talks. Those outstanding issues were agreed upon last night, Froman said. The list of products that would be affected include medical devices, video game consoles and computer software. More than 200 tariff lines will be reduced to zero under an expanded accord, according to the White House. The White House estimates that the expanded agreement will support as many as 60,000 additional US jobs and lower costs for manufacturing and services industries that rely on the components covered.