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Information Technology Agreement (ITA)

Information Technology Agreement (ITA). Presentation for ITU-WTO Workshop 2 December 2004. By Denby Probst, Counsellor, Market Access Division. Background of the ITA. Further liberalization desired in the Uruguay Round on IT products not achieved

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Information Technology Agreement (ITA)

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  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/Electromagnetic 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@wto.org The End

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