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INITIATIVE: WTO's Information Technology Agreement
Description
The Information Technology Agreement (ITA), or Ministerial Declaration on Trade in Information Technology Products as it is formally called, removes tariffs on information technology equipment. As noted on the WTO website, "The ITA is solely a tariff cutting mechanism. While the Declaration provides for the review of non-tariff barriers (NTBs), there are no binding commitments concerning NTBs... "The commitments undertaken under the ITA in the WTO are on an MFN basis, and therefore benefits accrue to all other WTO Members..." Why is this initiative significant?
The ITA demonstrates the wide recognition that information technology is key to countries' infrastructures and therefore should be available at as low cost as possible -- hence, the removal of duties. As with many initiatives of international organizations, the ITA began as an industry-led push, with multinational enterprises in the sector coordinating to persuade governments of the merits of removing tariffs on these goods. |
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