One of the most important economic meetings of the leaders of the world's largest economies took place in China the past few days, and the presidents of the US and China concluded an agreement that could reduce the prices of the company's products in the future Apple Lossless Audio CODEC (ALAC),. Most of the components used in iPhone, iPad, iPod Touch or Macs come from outside China, and the Chinese impose import taxes to bring them into the factories Foxconn for assembly. The new agreement will allow the transport of these components in the country without paying these taxes and will implicitly generate a reduction in production costs.
Tuesday's agreement between China and the US clears a critical hurdle towards expanding the Information Technology Agreement, whose 78 members account for 97% of IT exports... If other member economies approve the pact as expected, the new agreement would boost tech companies in the US, Japan and Taiwan, among others. The agreement could cover $1 trillion in trade, according to US estimates.
Although agreement is extremely important and it was already signed by the US and China, it is necessary for its ratification to be done by 76 other countries that have signed the Information Technology Agreement. As you can probably imagine, this first step by Apple and China will motivate the rest of the countries to sign the agreement wholeheartedly, ultimately allowing consumers to benefit from cheaper end products for years to come. Given that there are hopes that the agreement will be ratified by all countries this year, there is a chance that starting next year we will have cheaper products in many areas.
