US and China Reach Agreement on Free Trade for IT Products
Anyone striving for an online information technology degree should understand the economic impact international relationships can have on the IT industry. As the IT industry makes more advances, exporting and importing technology between countries around the world is what creates the high demand for new IT employees. Recent news of an agreement eliminating trade barriers on IT products between the U.S. and China has signaled a new era in the field, which should excite anyone aspiring for a career in information technology.
A New Agreement
President Obama has recently announced that the United States and the People's Republic of China have come to an accord on parting ways with high tariffs, or taxes, on shipping IT products back and forth between the two countries. The agreement in general expands the current list of IT items covered under the Information Technology Agreement, eliminating rates on products such as medical equipment, computer software and video games.
Not long before the announcement, Obama went on an official visit to China to address a wide variety of issues, ranging from the IT product tariffs to confronting environmental issues like climate change. While the news of the agreement is a ray of light for economic relations between the U.S. and China, political analysts are predicting that the deal will most likely be the only major outcome from the President's visit.
One of the primary benefits the accord outlines is the elimination of more than 200 tariffs of IT products under the newly expanded Information Technology Agreement. According to a press release from the White House, other highlights of the deal include:
- Supporting up to 60,000 new U.S. IT jobs
- Increasing global gross domestic product, or GDP, by a projected $190 billion
- Boosting IT productivity and growth all over the world, especially in developing countries
President Obama elaborated on how collaboration with the Asia-Pacific Economic Cooperation, or APEC, was the main source for allowing the agreement to happen, and will hopefully help expand further advancements between both countries.
"It was APEC's work that led to the Information Technology Agreement, which we are now negotiating to expand," The President issued in a statement. "So, it is fitting that we are here with our APEC colleagues to share the news that the United States and China have reached an understanding that we hope will contribute to a rapid conclusion of the broader negotiations in Geneva."
This article is sponsored by Western Governors University, a nonprofit, accredited, online university. WGU offers bachelor's and master's online degree programs in IT. To find out more, please visit www.wgu.edu/wisecareers_IT