On Tuesday the United States and China made break through talks at the Asia-Pacific Economic Cooperation (APEC) forum in Beijing to end tariffs on electronic goods traded globally in a deal that could mark a decisive turning point in the way that the two nations work out trade deals and respond to complaints of economic protectionism.
The reported deal on Tuesday would expand the Information Technology Agreement (ITA) that was enforced by the World Trade Organization (WTO) on July 1st, 1997 and slashes taxes and tariffs on information technology products.
The agreement has not yet been approved by some of the other countries in the ITA talks that are taking place within the World Trade Organization and are weeks away from final ratification in Geneva.
The agreement could eliminate tariffs up to $1 trillion and generate up to 60,000 jobs, according to U.S. Trade Representative Michael Froman.
Some of the goods that would see tariffs eliminated include semiconductors, magnetic resonance imaging (MRI) machines, and GPS devices.
The Financial Times reported today that the China-U.S. deal does not cover flat screen televisions or monitors.
APEC economies account for roughly 40 percent of the world’s population and nearly 60 percent of its GDP.