1. Information Technology Agreement (ITA)
Objectives and goals for this “Information Session”
--remind delegations where we are on NTBs
--provide an overview of the situation
--possible next steps to be taken
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
--Just to give you some background, as I’m not sure everyone is familiar with the ITA
--And I would first like to clarify, as we refer colloquially to the ITA, but in fact it is the Ministerial Declaration on Trade in Information Technology Products, which I will refer to in its short acronym, “ITA”, during my presentation today.
--To give some perspective, there was a desire by some countries to liberalise trade in IT products during our last round of Multilateral trade negotiations--the Uruguay Round, but this could not be achieved at that time, and therefore this initiative was carried forward t the Singapore Ministerial in 1996.

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
--Again, to put things in perspective, the ITA is a plurilaterial initiative, and its mandate is to “eliminate” tariffs on information technology products.
--These concessions are applied on the principle of “MFN” under the WTO, and therefore all WTO Members stand to benefit from this improved market access liberalization.

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

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 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. B

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 ? The End
Contact details:
--As I had stated at the beginning, the information session was to educate and re-familiarize us on where we stand on NTBs in the Group
--If past rounds are any indication, there will need to be a lot of time and effort devoted to NTBs in this Round if we are to have a successful outcome
--In concluding, I would note that we have set aside time for questions and answers and also to have an informal discussion if the participants to wish
--Remind, that the Secretariat...
The End