http://www.nytimes.com/2014/12/13/technology/wto-tech-tariffs.html 2014-12-12 15:36:33 W.T.O. Talks on Tech Tariffs Falter Experts say the deal could save billions of dollars in tariffs and generate hundreds of thousands of jobs across the globe. === HONG KONG — For negotiators who have spent years hammering out a deal that could reduce global tariffs on $1 trillion in high-tech goods, things are looking gloomy. Talks in Geneva to expand a Now negotiators are scrambling to meet a Friday afternoon deadline to ensure that the deal, which experts say could save as much as $15 billion a year in tariffs and generate hundreds of thousands of jobs across the globe, does not fall apart. “We’re on the razor’s edge — this thing is in jeopardy of complete collapse,” said a person familiar with the talks who spoke only on the condition of anonymity because the discussions are continuing and delicate. The crucial conflict, the person said, comes down to several big-ticket items. In particular, South Korean and Taiwan want tariffs cut on display panels used in televisions and computer monitors, which account for billions of dollars in global trade. China, home to a growing display industry, opposes including them in the agreement, the person said. Talks about updating the organization′s 1997 Information Technology Agreement to include new and more advanced products broke down last year after China objected to the scope of products covered. But momentum for a new agreement was restored during President Obama’s visit to China in November, when the Americans and the Chinese agreed to eliminate tariffs on more than 200 categories of products. At the time, American trade officials were optimistic that the arrangement with the Chinese would pave the way for a final deal to be cemented before the last meeting for the year of the organization’s general council, to be held throughout this month. But the Chinese have been unwilling to expand the list beyond the items agreed upon with the United States, angering other countries. Though the United States still exports many high-technology goods, China is now the world’s dominant exporter of electronics and has much to gain from an elimination of tariffs, experts say. Despite that, Chinese officials have argued in the state-run news media that Beijing needs to protect companies in important industries, like semiconductors and LCD displays, that are not as competitive internationally as many of China’s other products. The Obama administration estimates that expanding the agreement would create up to 60,000 jobs in the United States by eliminating tariffs on goods that generate $1 trillion in sales per year globally. The 78 participants in the agreement account for 97 percent of the world’s technology products, according to the W.T.O. “We are all aware of the importance of these negotiations,” Angelos Pangratis, the European Union’s ambassador to the W.T.O., said in “We need to make every effort to conclude now,” he added. “Later it will not be easier, rather the contrary. Now is the moment.” It is possible for the talks to continue if the Friday deadline is not met, but a breakdown makes the prospect of a deal much dimmer. Some analysts view the potential setback as a reflection on the organization itself, which has become notorious for its inability to seal trade agreements. “The W.T.O.’s ability to create laws has been threatened into becoming irrelevant,” said Andrew Lang, a professor of international trade at the London School of Economics. “It has shifted from attempts to create broad agreements toward a smaller mandate in areas where something can be done.” “Getting a deal done on the Information Technology Agreement,” he added, “would be an incremental but important step for the W.T.O.”