US, China Reach Breakthrough on WTO Free Trade Deal
November 11, 2014 12:17 AM
The U.S. and China have reached a breakthrough in talks to expand a World Trade Organization agreement that would eliminate tariffs on high-tech products.
The deal was announced in Beijing by President Barack Obama, who meets Tuesday with top Chinese leaders following the conclusion of a regional economic summit.
President Obama said the U.S. and China have "reached an understanding" that will lead to wider talks on expanding the WTO's Information Technology Agreement (ITA).
Negotiations were suspended in November 2013 because of differences between the U.S. and China over what products should be included in the agreement.
A statement by U.S. Trade Representative Michael Froman said that following the U.S.-China breakthrough, full talks are now scheduled to resume in December.
The statement said medical equipment, video game consoles, computer software, and next generation semiconductors are among the high-tech products that will see tariffs eliminated.
The ITA, which went into effect in 1997, requires signatories to eliminate duties on certain IT products. Many say the list of covered products should be expanded because of technological advancements.
Free trade agreements have been a major focus of the Asia-Pacific Economic Summit that wraps up Tuesday in the Chinese capital.
Obama is using the summit to help push the U.S.-led Trans-Pacific Partnership trade zone. The TPP is controversial because it excludes China and competes with Beijing's own plan for an Asia free trade pact.
President Obama, who said TPP talks are progressing, on Monday hosted regional leaders at the U.S. Embassy in Beijing for talks on the 12-nation trade pact.
At an APEC gathering Tuesday, Chinese President Xi Jinping told regional leaders they should "push vigorously" to advance Beijing's preferred free trade pact, the Free Trade Area of the Asia-Pacific, or FTAAP.
Following the summit, Presidents Obama and Xi meet for dinner Tuesday. On Wednesday, they will hold formal talks as part of a state visit by Obama.
The visit comes during a time of strained US-Sino relations on issues ranging from cyber espionage to human rights as well as an impression among Chinese leaders that the U.S., through the rebalance of its forces to the Pacific, is trying to contain China.
No major breakthroughs are expected during the talks.
On Monday, the two countries announced a new visa policy that will increase the validity of short-term tourist and business visas issued to one another's citizens from one to ten years - the longest validity allowed under U.S. law - and extend the validity of student and exchange visas from one to five years. VOA
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