The EU has proposed to widen a deal that ensures global free trade for IT goods to include new types of hardware.

The Information Technology Agreement (ITA) was signed in 1996 and covers the trade in IT between the EU and countries such as the US, Japan and Taiwan.

Peter Mandelson, EU trade commissioner, explained that the ITA remained a milestone duty-free agreement but that its coverage needed to be extended and new products added. "It risks being left behind after 12 years of technological development," he said.

The US, Japan and Taiwan have accused the EU of breaking the agreement's zero-duty provisions by imposing import tariffs on products developed since it was brokered, including flat-screen LCD monitors.

After initial negotiations failed, the US, Japan and Taiwan in July requested the setting up of a dispute arbitration panel at the World Trade Organisation.

The pact has been credited with helping to encourage the Asian technology boom since its inception.