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Humans perceive a lot from how someone's body reacts during conversation and while video conferencing aims to defeat the issue of being unable to see a person, it also creates other problems. As I mentioned, body language can be misread if there is lag or hiccups in the connection but with video conferencing, it is very rare that you will see anything but the head and shoulders of a person. While the face holds a lot of emotion it also does not reveal shaky hands or nervousness that can be picked up from fidgeting which can be critical when dealing with important matters.
It's also difficult to establish a physical relationship with the person in the form of handshakes, bowing, nods, etc. that are customary in such deals which removes a large portion of contact that establishes a deep feeling of trust between two people.