Members of the World Trade Organisation have suspended talks on extending the product coverage of the authority?s agreement to cut IT tariffs.
Talks are expected to resume in September.
The latest suspension follows two day long meetings which saw "some movement and some welcome breakthroughs in some quarters", noted Martin Harvey, the New Zealand official who chaired the talks.
"Unfortunately, the various interests and sensitivities of participants have not allowed a consensus to be reached on a package of products," he said.
"Among a core of countries, I believe there is the makings of a package but certain key obstacles must be removed," he continued.
Harvey proposes to hold consultations when talks resume.
European Commission (EC) sources said Malaysia wanted more consumer electronic items to be covered in the tariff cuts despite an European Union (EU) offer to lift its import duties on microphone kit.
The EU is disappointed the US is not offering more on optical fibre components and on photocopiers, though "there was a little bit of movement" on these from the US, one source said.
However the EU's scope for manoeuvre is limited and Italy has told Commission negotiators it will not support an overall deal unless the US offers more in the optical fibre sector, they said.
The core of any agreement will be on reducing tariffs on trade in printed circuit board manufacturing equipment, they said.
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