http://www.nytimes.com/2014/12/13/technology/wto-tech-tariffs.html


W.T.O. Fails on High-Tech Tariff Deal
By JONATHAN WEISMAN and PAUL MOZUR
DEC. 12, 2014

WASHINGTON — Last month, their faces beaming with self-congratulatory 
enthusiasm, President Obama and China’s president, Xi Jinping, announced 
an agreement to drop tariffs on a range of high-technology products, an 
accord that was supposed to propel far more significant trade talks in 
the weeks to come.

On Friday in Geneva, those talks on technology trade collapsed in 
acrimony, a sign that China is still unwilling to open its markets to 
competition where it is most vulnerable.

“We came to Geneva this week and worked hard to build a consensus around 
the bilateral agreement we concluded with China,” Michael W. Punke, 
deputy United States trade representative and the United States 
ambassador to the World Trade Organization, said in a statement. “Like 
everyone in the room, we are disappointed not to be celebrating a deal 
this week. We missed a big opportunity.”

The Geneva talks aimed to reduce global tariffs on $1 trillion in 
high-tech goods, be it small-bore consumer electronics like video game 
consoles or big-ticket items like magnetic resonance imaging machines 
and advanced semiconductors.

Experts say a breakthrough could have saved as much as $15 billion a 
year in tariffs and generated hundreds of thousands of jobs across the 
globe. But the talks broke down in the middle of a face-off between 
China and South Korea over liquid-crystal display television screens, a 
market where China strongly wants to expand. After difficult 
negotiations, South Korea was willing to lower tariffs on LCDs. But the 
Korean delegation wanted China to offer at least a face-saving 
concession, most likely in advanced lithium batteries, a product in 
which China already has a billion-dollar trade surplus, according to an 
American official with knowledge of the talks. China rebuffed appeals 
from American and Korean negotiators, even from the head of the W.T.O.

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