Everyone Agrees That... SUCCESSFUL CONCLUSION OF THE DOHA DEVELOPMENT ROUND IS CRITICALLY IMPORTANT

WHY? WHAT ARE IT INDUSTRY OBJECTIVES? WHAT ARE THE HURDLES WE FACE? WHAT IS THE TIMETABLE FOR ACTION? Presentation to WITSA Austin, Texas May 5, 2005 Joe Tasker, General Counsel Information Technology Association of America

IT Industry Objectives NAMA Talks (Goods) –Duty Free IT Sector –Market for Services a Function of Hardware Cost –Extend Information Technology Agreement to more Countries –Expand ITA to More Goods Intermediate Manufacturing (circuit board production) New Products (multichip modules) Convergence Products (HDTV and VOIP)

IT Industry Objectives GATS Talks (Services) –Comprehensive commitments in “computer and related services” –“2 Digit Commitments” Across all modes of delivery –Eliminate ambiguous distinctions with broad commitments –Adopt the “Friends” or FOCS approach

IT Industry Objectives Software –NAMA (recording) –GATS for Related Services (not Software itself) –Favorable Treatment for Electronic Transmissions –Avoid Classification by Function (e.g., Financial, Healthcare)

IT Industry Objectives Trade Facilitation Government Procurement –Broad Disciplines –More than just Transparency –Include China

Hurdles NAMA/Goods –Convincing case for elimination of duties –Can broad coverage be realized for convergence products? GATS/Services –More countries need to make offers –“Mode 4” issue Software –A “Special Approach” will need to be studied –Critical to stay out of “content” classification

More Hurdles Trade Facilitation –Progress will depend on other sector success Government Procurement –Need convincing arguments for resisting countries –“Sub Central” issue in United States –How can China be convinced

Timetable RIGHT NOW GATS “Better Offer” Deadline May 2005 NAMA talks ongoing Agriculture Agreement Before Ministerial? Progress Needed Now to Get to WTO General Council Meeting in Geneva end of July Only Way to Have Time For Political Agreement Before Hong Kong Ministerial December 2005 Hong Kong Success Critical to Concluding the Round in 2006

Conclusion There is reason to be optimistic But Success is not a foregone conclusion Thanks Joe Tasker, General Counsel ITAA