The World Trade Organization (WTO) announced on Friday that more than 50 countries have agreed to cut tariffs on information technology (IT) products from computers to GPS locators, video games to medical equipment.
This would be the first time that the WTO cuts tariffs in 18 years. The agreement will update the 1997 Information Technology Agreement (ITA) and add more than 200 products which now will fall into under the category of zero-tariff and duty-free trade.
Although not all countries have signed the bill, 161 members will benefit the new deal since the tariffs are the taxes on imported goods.
Computer software, video game consoles, printer cartridges, GPS devices, MRI machines and semiconductors are among the products added to duty-free trade.
The WTO estimates the items covered by the deal worth $1 trillion annually. The final work is expected to be completed in the WTO summit in Nairobi, Kenya in December.