U.S., China reach deal on tariffs

BEIJING, Nov. 11 (UPI) -- A tariff agreement between the United States and China, reached Tuesday, is being hailed as a breakthrough that could affect $1 trillion in international trade.

The surprise announcement of the deal, which will eliminate tariffs on a variety of high-tech products, came at the Asia-Pacific Economic Cooperation summit in Beijing. It paves the way, officials said, for another tariff-cutting agreement when the World Trade Organization meets in Switzerland next month; the final deal would eliminate tariffs on $1 trillion in annual sales of information and communications technology.

Momentum in tariff negotiations has slowed in the past two years, but was stimulated by preparations for the APEC meeting and its emphasis on economic issues.

"This is encouraging news for the U.S.-China relationship. It shows how the U.S. and China can work together to advance their bilateral economic agenda and support a multilateral trading system," said Michael Froman, U.S. Trade Representative.

The United States and China agreed Monday to expand the Information Technology Agreement, which covers the sale and importation of semiconductors, medical devices, GPS devices and other technology products. U.S. President Barack Obama, attending the summit, said the deal "will contribute to a rapid conclusion to the broader negotiations in Geneva."

The agreement is a rare example of progress between the two countries whose recent relationship is marked by conflict over cybersecurity, human rights and China's territorial disputes with its neighbors, the Wall Street Journal noted. The United States, the European Union and Japan have been eager to revise the 1997 agreement to cover newer products.