Geneva: Talks on cutting trade tariffs on hundreds of information technology products collapsed on Friday, delaying and potentially scuppering a deal estimated to be worth $1 trillion to global trade.
"This is potentially an enormous deal. We missed an opportunity here this week to conclude," US Ambassador Michael Punke told reporters at the World Trade Organization (WTO).
The talks aimed to update the WTO`s 17-year-old Information Technology Agreement, which guarantees zero-tariff and duty-free trade on hundreds of products. The new deal would add about 200 more modern products to the list.
Several participants blamed their failure on a deadlock between China and South Korea over liquid crystal display (LCD) screens.
"The participants have significantly reduced the gaps on expanding the coverage of the ITA agreement in recent days – but unfortunately it has not been possible to finalise the negotiations this week," WTO Director General Roberto Azevedo said in a statement.
The countries involved in the talks are expected to reconvene in 2015 to see if they can find a way to overcome the blockage.
South Korea, home to top LCD producer LG Display Co Ltd, wanted LCD screens included in the deal, participants said.
But China, which wants to foster its own LCD industry, refused, demanding that all countries accept the same terms that it agreed bilaterally with the United States last month after a long-standing stalemate.
One trade official involved in the talks said South Korea had offered a number of concessions during the week, but there had been no reciprocal move by China. Other countries also offered changes to try to entice China to make the last small step needed for a deal, the official said.
Chinese trade officials were not available for comment.
Although Friday`s deadline for finishing the negotiation was an artificially imposed one, Punke had said the talks` "success or failure" would be decided this week. His European Union counterpart, Angelos Pangratis, had said: "Later it will not be easier ... Now is the moment."
