US and China Reach Agreement on Cutting Tariffs on Ink Cartridges

President Obama, in Beijing for the Asia-Pacific Economic Cooperation summit, said that the U.S. and China have reached an understanding on expanding the Information Technology Agreement (ITA) of 1996, which could end tariffs on $1 trillion in global sales of semiconductors, MRI machines, GPS devices, printer ink cartridges, video game consoles and other high-tech items, reported telegram.com.

Las Angeles Times noted the tariff on printer ink cartridges, as high as 25%, would be eliminated, but full discussions on ratification are expected to take place among WTO members in Geneva in December.

Also, chip and medical device industries might benefit the most from the new agreement, according to the statement at telegram.com.

The ITA bans tariffs — or taxes on imported goods and services — on IT products among countries that are part of the World Trade Organization. Tariffs give domestic goods a price advantage for customers over imported ones, according to the statement at telegram.com.