WASHINGTON – The US and China expanded the Information Technology Agreement, a trade pact that promotes fair and open trade by providing duty-free treatment of certain information and communications technology products, including semiconductors.

Following negotiations, President Obama announced a bilateral agreement on the product scope of an expanded ITA that includes semiconductors, static converters and inductors, and an array of technology products, including medical devices, GPS devices, software media, ICT testing instruments, and more.

The value of an expanded ITA is estimated at more than $1.4 trillion of annual world trade.

This agreement will enable negotiators to return to Geneva to finalize an ITA deal, with talks targeted for December, says the Semiconductor Industry Association, which applauds the expansion.

“The ITA has played a central role in helping the US semiconductor industry drive innovation, create jobs, lower consumer prices and connect communities throughout the world,” said Brian Toohey, president and CEO of the SIA. “Today’s agreement between the US and China to expand the ITA is a hard-fought victory for the US semiconductor industry and a big win for the US economy and consumers around the world. We look forward to all ITA countries finalizing a deal as soon as possible.”

US negotiators sought expanded coverage for multi-component semiconductors. MCOs comprise a growing share of the global semiconductor market and will be key to continued growth and innovation, says the SIA. Inclusion of MCOs in an expanded ITA would save the industry $150 million to $300 million in global annual tariffs, according to the research firm. Global sales of MCOs are estimated to grow 10% annually over the next five years.