 "US-China talks on tech pact overcome hurdles")
The Obama administration said on Tuesday it had achieved a breakthrough in negotiations with China to eliminate tariffs on an array of information technology products, from video-game consoles and computer software to medical equipment and semiconductors.
The understanding, reached during a visit to China by President Barack Obama, opens the door to expanding a World Trade Organization treaty on these products, assuming other countries can be persuaded to accept the same terms. American officials predicted a broader deal would be reached swiftly now that it had resolved longstanding hurdles with China.
"We're going to take what's been achieved here in Beijing back to Geneva to work with our WTO partners," Michael B Froman, the US trade representative, told reporters. "While we don't take anything for granted, we're hopeful that we'll be able to work quickly" to conclude an expansion of the treaty, known as the Information Technology Agreement.
The breakthrough is likely to be the most tangible economic outcome of Obama's visit to China, though American officials are holding out hope that he and President Xi Jinping will also make progress in developing a common position on the reduction of carbon emissions.
Obama is scheduled to hold his first one-on-one meeting of this trip with Xi on Tuesday evening at a private dinner. Officials said he would press Xi to resume a US-China working group on cybersecurity issues, which abruptly stopped its discussions after the United States charged several Chinese military officers with hacking.
"We did see a chill in the cyber dialogue," said Benjamin J Rhodes, the deputy national security advisor. "The fact that we pursued those cases demonstrates that we're not going to stand idly by." But he added, "We do believe it's better if there's a mechanism for dialogue."
Speaking on Tuesday at a session of the Asia-Pacific Economic Cooperation forum in Beijing, Obama credited the group with originating the work on reducing technology tariffs and said, "It is fitting that we are here with our APEC colleagues to share the news that the United States and China have reached an understanding that we hope will contribute to a rapid conclusion of the broader negotiations in Geneva."
Talks with China over expanding the 1997 treaty on information technology broke down last year over the scope of the products covered by the agreement. But after intensive negotiations leading up to Obama's visit, Froman said, the Americans and Chinese agreed Monday evening to eliminate more than 200 categories of tariffs.
While the US still exports many high-technology goods, China is the world's dominant exporter overall of electronics and has much to gain from an elimination of tariffs.
Asian neighbours like Taiwan, South Korea and Japan increasingly find themselves supplying China's huge electronics industry, deepening their economic dependence on decisions made in Beijing.
"With so many new products created since the ITA was concluded two decades ago, expanding the agreement's coverage is imperative," said Myron Brilliant, the head of international affairs of the United States Chamber of Commerce. "With trade in tech goods surpassing $4 trillion annually, the commercial significance of these negotiations is obvious."
At a news briefing, Froman said negotiators had also made progress on the Trans-Pacific Partnership, a regional trade pact that is a centrepiece of Obama's strategic shift to Asia.
While he acknowledged that sticking points remained, he said, "it's become clearer and clearer what the landing zones are." Froman said that Obama would seek fast-track trade authority from Congress, but that the best way for the president to win congressional passage of the Trans-Pacific Partnership would be to reach the best possible deal.
The understanding, reached during a visit to China by President Barack Obama, opens the door to expanding a World Trade Organization treaty on these products, assuming other countries can be persuaded to accept the same terms. American officials predicted a broader deal would be reached swiftly now that it had resolved longstanding hurdles with China.
"We're going to take what's been achieved here in Beijing back to Geneva to work with our WTO partners," Michael B Froman, the US trade representative, told reporters. "While we don't take anything for granted, we're hopeful that we'll be able to work quickly" to conclude an expansion of the treaty, known as the Information Technology Agreement.
The breakthrough is likely to be the most tangible economic outcome of Obama's visit to China, though American officials are holding out hope that he and President Xi Jinping will also make progress in developing a common position on the reduction of carbon emissions.
Obama is scheduled to hold his first one-on-one meeting of this trip with Xi on Tuesday evening at a private dinner. Officials said he would press Xi to resume a US-China working group on cybersecurity issues, which abruptly stopped its discussions after the United States charged several Chinese military officers with hacking.
"We did see a chill in the cyber dialogue," said Benjamin J Rhodes, the deputy national security advisor. "The fact that we pursued those cases demonstrates that we're not going to stand idly by." But he added, "We do believe it's better if there's a mechanism for dialogue."
Speaking on Tuesday at a session of the Asia-Pacific Economic Cooperation forum in Beijing, Obama credited the group with originating the work on reducing technology tariffs and said, "It is fitting that we are here with our APEC colleagues to share the news that the United States and China have reached an understanding that we hope will contribute to a rapid conclusion of the broader negotiations in Geneva."
Talks with China over expanding the 1997 treaty on information technology broke down last year over the scope of the products covered by the agreement. But after intensive negotiations leading up to Obama's visit, Froman said, the Americans and Chinese agreed Monday evening to eliminate more than 200 categories of tariffs.
While the US still exports many high-technology goods, China is the world's dominant exporter overall of electronics and has much to gain from an elimination of tariffs.
Asian neighbours like Taiwan, South Korea and Japan increasingly find themselves supplying China's huge electronics industry, deepening their economic dependence on decisions made in Beijing.
"With so many new products created since the ITA was concluded two decades ago, expanding the agreement's coverage is imperative," said Myron Brilliant, the head of international affairs of the United States Chamber of Commerce. "With trade in tech goods surpassing $4 trillion annually, the commercial significance of these negotiations is obvious."
At a news briefing, Froman said negotiators had also made progress on the Trans-Pacific Partnership, a regional trade pact that is a centrepiece of Obama's strategic shift to Asia.
While he acknowledged that sticking points remained, he said, "it's become clearer and clearer what the landing zones are." Froman said that Obama would seek fast-track trade authority from Congress, but that the best way for the president to win congressional passage of the Trans-Pacific Partnership would be to reach the best possible deal.
©2014 The New York Times News Service