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

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.

The USITC, an independent, nonpartisan, factfinding federal agency, produced the report at the request of the U.S. Trade Representative (USTR). The report is the second of two reports delivering advice and information on the expansion of the ITA.

As requested, the report covers a draft list of products, compiled by the USTR and included with his request letter, 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 of the report follow.

• 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.

   

The Information Technology Agreement: Advice and Information on the Proposed Expansion, Part 2 (Inv. No. 332-536, USITC publication 4382, February 2012) is available on the USITC's Internet site at http://www.usitc.gov/publications/332/pub4382.pdf.

The report may be requested by emailing pubrequest@usitc.gov, by calling 202-205-2000, or by writing the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.

USITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance. The resulting reports convey the USITC's objective findings and independent analyses on the subject investigated. The USITC makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding reports are subsequently released to the public, unless they are classified by the requester for national security reasons.