Information Technology Agreement (ITA)

1
Information Technology Agreement (ITA)

• Presentation for ITU-WTO Workshop
• 2 December 2004

By Denby Probst, Counsellor, Market Access
Division
2
Background of the ITA

• Further liberalization desired in the Uruguay
  Round on IT products not achieved
• Negotiations began among major trading partners
  in 1996 to achieve the ITA
• Singapore Ministerial (1996)--Establishment of a
  Ministerial Declaration on Trade in Information
  Technology Products (ITA)

ITA
3
What is the ITA?

• Main Points
• Plurilateral initiative
• Among WTO Members and acceding states or separate
  customs territories
• To eliminate tariffs on information technology
  products as outlined in the Annexes attached
  thereto
• That are applied on an MFN basis

4
Definition of Information Technology

• There is no definition of information technology
  in the Declaration.
• Information technology products are only
  defined by their inclusion in Attachment A or
  Attachment B of the Declaration

5
Information Technology Products

• Computers
• Telecommunications
• Semiconductors
• Semiconductor manufacturing equipment
• Software
• Scientific Instruments

6
TelecommunicationsEquipment

• Line telephony (HS 8517)telephones, fax
  machines, switching apparatus
• Transmission apparatus (HS 8525)not radio or TV
  broadcasting
• Portable receivers (HS 852790)for calling,
  alerting or paging
• Optical fibre cables (HS 854470)

7
Requirements

• No exceptions to product coverage, all products
  must be bound at zero
• Flexibility allowed with respect to staging of
  concessions --basic staging to
  2000 --extended staging to 2005 for those
  original participants
• --today, staging to 2008 for some recent
  participants

8
Other aspects of the Declaration

• To consider classification divergences, beginning
  with the products specified in Attachment B
• Periodic review of the product coverage
• To consult on non-tariff trade barriers

9
ITA Today

• 63 Participants (including the Member states of
  the European Communities)
• Accounting for approximately 97 of world trade
  in information technology products
• Trade of IT products covered by the ITA has been
  as high as 16.5 in 2000, dropping slightly to
  12 of world trade today.

10
NTM Work Programme

• In November 2000, the Committee launched an NTM
  Work Programme to identify NTMs and assess their
  impact on IT trade
• Many of the issues raised concern
  standards/conformity assessment issues, but there
  are others concerning customs procedures,
  transparency, and government procurement, etc...

11
EMC/EMI Conformity Assessment

• One NTB, Electromagnetic compatability/Electromagn
  etic interference was chosen as a pilot project.
• It was a requirement for a lot of IT equipment
  that involved relatively low-risk for the
  consumer
• The Committee has proceeded with drafting
  possible Guidelines for conformity assessment
  procedures, including the use of 1st, 3rd party,
  and SDoC.

12
ITA II

• As a result of the finalization of the ITA in
  April 1997, participants decided on an expedited
  review of the product coverage to commence in
  1997
• Work continued during 1998 and1999.
• The Committee still takes up the matter at each
  meeting, but there has been no agreement to add
  new products as of today

13
Doha Negotiations

• Opportunity for all WTO Members to improve market
  access for their products
• Members will need to identify priority areas to
  negotiate, both in tariffs and non-tariff
  measures
• Will provide improved possibilities for trade of
  IT and related goods

14
The End

• Questions ?
• Comments ?
• Contact details denby.probst_at_wto.org

The End