What Is An Ita Agreement

The WTO Information Technology Agreement (ITA), which abolishes tariffs on information and communication technologies (ICTs), was updated last year when 24 participants from 53 WTO members agreed to almost double the products contained in the Agreement. The original ITA was launched in 1997 and has been a boon for global EIC trade, which has grown from $1.2 trillion before the deal to more than $5 trillion today. Figure 2 Ait enlargement: estimating the value of trade per agreement member, 2011-2013 The United States and more than 50 WTO members concluded an agreement in 2015 to expand the list of ICT products subject to customs elimination. This agreement, dubbed the “ITA Extension”, builds on the 1996 ITA and requires the parties to have phased out hundreds of tariffs on other ICT products. The ITA`s expansion requires the elimination of tariffs on a list of 201 products, including advanced semiconductors, high-tech medical devices, global positioning systems, software carriers, video game consoles and high-tech ICT testing tools. As part of itA`s expansion, annual exports of U.S. technology worth more than $180 billion to major markets around the world will no longer be subject to onerous tariffs. The agreement also includes a commitment to remove non-tariff barriers to trade in the information technology sector and to review the list of products covered to determine whether further expansion is needed. to reflect future technological developments. The Information Technology Agreement (ITA) is a plurilateral agreement implemented by the World Trade Organization (WTO) and concluded in 1996 in the Ministerial Declaration on Trade in Information Technology Products and entered into force on 1 July 1997. Since 1997, an official WTO committee has been monitoring the follow-up to the Declaration and its implementation.

[2] The agreement was extended in 2015. [3] Under the terms of the agreement, the majority of tariffs on the 201 products will be abolished within three years, with reductions starting in 2016. By the end of October 2015, each of the participating members will submit to the other participants a draft timetable outlining how the terms of the agreement are to be respected. Participants will spend the next few months preparing and revising these schedules. The aim is to complete this technical work in time for the Nairobi Ministerial Conference in December. After 17 rounds of negotiations on Saturday 18 July 2015, negotiators approached an agreement on a list of products for an extension of the IA and a draft declaration on how the agreement will be implemented. Figure 5 Extension of the ITA: Application of the most favoured income tax to products covered by the agreement The Information Technology Agreement is a plurilateral agreement to abolish tariffs on certain information and communication technology (ICT) products. The ITA covers a wide range of ICT products, including computers and computer peripherals, electronic components, including semiconductors, computer software, telecommunications equipment, semiconductor manufacturing equipment and computer-aided analytical instruments. To date, 82 WTO members participate in the RIA, representing 97 per cent of global trade in ICT products.

Decisions of WTO bodies on the Information Technology Agreement are available in the Guide to the Analytical Index to WTO Law and Practice. 18 of the 24 participants in the expanded ITA implemented the agreement on 1 November. It should be noted in particular that China submitted its commitments to the WTO on 26 October 2016, which should significantly encourage other Members to fully implement the agreement expeditingly. In addition to the monetary gains for the IT industry resulting from the removal of import duties, investors and traders would also benefit from a significant improvement in market access, predictability and security. Indeed, some of these products are not currently tied (i.e. they are not subject to a legal ceiling in the WTO) or are subject to high tariffs. With the expansion of ITA products, participating members would have a legal obligation not to impose import duties on covered products. .