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The Information Technology Agreement: Advice and Information on the Proposed Expansion, Part 2

USITC Publication 4382
Investigation No. 332-536

Summary

Extending duty-free treatment under the Information Technology Agreement (ITA) to certain information and communications technology products would likely increase U.S. export opportunities to ITA member countries, reports the U.S. International Trade Commission (USITC) in its new publication.

The elimination of tariffs through the original ITA is widely credited with increasing global trade flows, promoting increased business and manufacturing efficiency, and enhancing overall competitiveness. Extending duty-free treatment to additional information and communications technology products and innovations is likely to benefit U.S. exporters, according to the report.

Completed at the request of the U.S. Trade Representative, the report covers a draft list of products, compiled by the USTR that could be considered for duty free treatment under the ITA.

The investigation identifies, for each product on the list, tariffs in major markets, major producing countries, leading U.S. export markets, and leading sources of U.S. imports. The report also examines the benefits to the U.S. economy of ITA expansion and provides an overview of key selected subsectors, including information on increased market access opportunities and export opportunities for products in those subsectors. Highlights include:

  • The most frequently occurring major U.S. export markets for products on the list were the European Union (EU), Canada, Mexico, China, and Japan.

  • These same countries were also the most common major suppliers of U.S. imports of the products on the list. With the exception of Mexico, all are ITA members.

  • Products on the list face tariffs of between zero and 35 percent in major export markets

  • The report profiles five subsectors to illustrate the potential for increased market access opportunities for U.S. firms as a result of ITA expansion: multi-component integrated circuits, medical devices, relay and industrial control equipment, optical media, and loudspeakers and headsets.

View the publication at: http://www.usitc.gov/publications/332/pub4382.pdf