Nairobi talks have finally gotten a breakthrough on the Information Technology Agreement (ITA) signed on Wednesday by 79 World Trade Organisation (WTO) members.

The pact effectively eliminates restrictions on 201 items included in the expanded ITA list.

This is the biggest tariffs cut in 19 years of the history of WTO, and unlocks trade worth billions of dollars.

It is estimated that ITA countries account for 97 per cent of world trade, trading about $1 trillion annually, which is nearly one-fifth of global merchandise trade.

"This treaty is the biggest for WTO in more than a decade and it shows that compromise can be reached setting an example for the next few days here in Nairobi," WTO director-general Roberto Azevedo said.

EXPANDED LIST

The deal almost fell out after China, one of the largest exporters and market for the electrical products, delayed to make final submission for the expanded list.

In 2013, ITA talks fell out after China insisted on dropping some items from the broader list. However US President Barack Obama and Chinese President Xi Jinping in 2014 reached a bilateral agreement in Beijing on expanding the scope of the pact.

The Chinese special list was however not revealed and analysts saw the tact as a tool for keeping the goods out of the pact since most of the technology which change very fast would already be obsolete.

The expanded scheme would rope in LCD Televisions (Liquid Crystal Display), video games, semiconductors, printer ink cartridges, loudspeakers, video cameras and even scanners.

New generation semiconductors, GPS navigation systems, medical equipment, tools for manufacturing circuits, technical circuits and touch screens are also included in the list.

WTO says the pact could unlock trade potential that is only compared to the annual global trade in iron, steel, textiles and clothing combined.

This means that the ‘plurilateral’ agreement will affect the whole world including WTO members who are not party to it.