EU Plans Changes to IT, Telecomm Duty-Free Trade Deal

BRUSSELS -(Dow Jones)- The European Union will Monday unveil proposals to update an international deal that allows duty-free trade in information technology and telecommunications products.

The Information Technology Agreement was first signed in 1996 and has grown over the years to include 70 countries and 97% of global IT trade.

But it has failed to keep up with the fast-changing market, meaning that many new and important IT products aren't covered.

"We need an ITA for the 21st century that will continue to benefit consumers and businesses," said E.U. Trade Commissioner Peter Mandelson.

The E.U. is calling for new negotiations to start that will review the products benefitting, find a way to keep the agreement in pace with technological developments and expand the number of countries participating.

IT products account for over $1.5 trillion of exports world-wide annually, according to E.U. figures.

-By Carolyn Henson, Dow Jones Newswires; +32 2 741 1484; carolyn.henson@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 14th September 2008