An international agreement to abolish customs duties on products worth $ 1.3 trillion

World Trade Organization agreed to the biggest deal to reduce tariffs for two decades
July 28, 2015 12:41

From: Mohammed Abu Melih

Riyadh - direct: the European Union agreed the United States of America and China, and the vast majority of members of the World Trade Organization (WOT) who participate in the meeting which was held recently in Brussels, on the abolition of tariffs on 201 product of high-tech products fees.

The agreement is an extension of the Information Technology Agreement, which was signed in 1996 (ITA), as is the largest deal to reduce tariffs at the WTO in nearly two decades.

Convention began at the request of the European Union, and will benefit both consumers and businesses alike, especially as these products included a wide range of goods including medical equipment, video games, and some home appliances, in which the intervention of information technology.

The products include the deal is estimated at $ 1.3 trillion (trillion euros), according to the European Union site, covering about 90% of world trade in the products concerned, also make up more than about 7% of world trade in general size.

He says FAO Director-General Roberto Azevedo said: "This is the biggest trade of automotive trade or textiles and clothing, iron and steel combined."

Azevedo believes that: "the abolition of tariffs for trade of such importance would have a tremendous impact, and will encourage lower prices in the sectors that use these products, and will lead to the creation of jobs and stimulate global growth."

On this occasion, commented Trade Commissioner of the European Union Cecilia Malmstrom: "This represents a great deal of benefit to consumers, and for large and small businesses alike."

Malmstrom said: "We have worked hard to broker a settlement between the different countries, and find the best solution for Europe, and this is a great achievement for us."

She pointed out that "the world can work together to achieve solutions that benefit everyone. Looking ahead."

She says: "This agreement is a source of inspiration to intensify our efforts in preparation for the ministerial meeting of the WTO in Nairobi in December."

Through that agreement will eliminate tariffs within 3 years from the date of implementation of the agreement which is expected to begin in July 2016.

For sensitive products will be negotiated for longer periods to give the industry time to adapt to the zero-tariff environment.

The European Union has a surplus of trade in the products covered by the Convention is estimated at 15 billion euros.

According to the site of the European Union, the agreement does not include some electronic products subject to the fees in the European Union, such as some screens and projectors, radios is digital, as well as TVs.

And to extend the ITA aims to expand the original Information Technology Agreement between the Member States of the World Trade Organization (WTO), which came into force in 1997, includes a total of 54 countries are members of the World Trade Organization.

It states that have signed the new agreement: the United States, Australia, Canada, Chile, Colombia, Costa Rica, the European Union, Turkey, Hong Kong, Iceland, Japan, Liechtenstein, Mexico, New Zealand, Norway, Panama, Pakistan, Paraguay, South Korea, and Switzerland, and Taiwan.

Since the completion of the ITA and entered into force in 1997 it doubled trade in this sector four times.

The agreement comes at a time when plans to the United States, Japan, and ten other countries of the Pacific region, hold a meeting to put the finishing touches on a strategic partnership agreement across the Pacific, and scheduled to take its decision today in the US city of Hawaii.


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