EU proposes broader IT free trade

12:53 16th September 2008

The EU has proposed to widen a deal that ensures global free trade for IT goods to include new types of hardware.

The Information Technology Agreement (ITA) was signed in 1996 and covers the trade in IT between the EU and countries such as the US, Japan and Taiwan.

This pact has been credited with helping to encourage the Asian technology boom since its inception; however, it has recently run into difficulties after the EU was accused of imposing import tariffs on products developed since it was brokered.

Peter Mandelson, EU trade commissioner, suggested that the ITA remained a milestone agreement but that its coverage needed to be extended.

He said: "It risks being left behind after 12 years of technological development."

Yesterday, two of the world's largest technology trade organisations - the American Electronics Association and the Information Technology Association of America - confirmed that they are in merger talks.

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