Information Technology Agreement: US, China Reach Deal To Expand Trade Pact On High-Tech Consumer Goods

The U.S. and China reached an agreement on a trade deal that would expand the scope of goods that fall under a pact covering high-tech consumer goods, the U.S. National Security Council tweeted Monday. The understanding came as President Obama was in China for the Asian-Pacific Economic Cooperation (APEC) summit.

The Information Technology Agreement, signed by 29 countries in 1997, eliminates tariffs for high-tech consumer goods as well as semiconductors and components for such high-tech goods. The NSC said Monday’s agreement paved the way for the first major tariff-cutting deal at the World Trade Organization in 17 years.

Some of the goods that will no longer be subject to tariffs include medical equipment, GPS devices, video game consoles, computer software and next-generation semiconductors, according to Time magazine political reporter Zeke Miller.

The expanded agreement on the ITA was sought after for two years, the Wall Street Journal reported.

Negotiations have been underway at the APEC summit for another trade agreement known as the Free Trade Area of the Asia-Pacific, according to the Journal. Creating FTAAP is one of China’s top priorities at the summit. The U.S. instead favors a different trade deal, the Trans-Pacific Partnership, which is being negotiated by 12 countries.

Obama is one of 21 heads of state in China for the APEC summit. The president's visit also includes a private dinner with Chinese President Xi Jinping.