ITI WELCOMES APEC’S SUPPORT FOR THE INFORMATION TECHNOLOGY AGREEMENT

03.04.2008

ITI WELCOMES APEC’S SUPPORT FOR THE INFORMATION TECHNOLOGY AGREEMENT

WASHINGTON, D.C. –Information Technology Industry Council (ITI) Vice President of Technology and Trade John Neuffer applauded the strong position reaffirmed yesterday by the Asia-Pacific Economic Cooperation (APEC) forum to preserve the Information Technology Agreement (ITA).

Wrapping up their first round or meetings this year in Lima, Peru, APEC’s senior officials expressed their “concern about products covered by the ITA that may no longer be receiving duty free treatment in some key markets because of their technological innovations.” The senior officials also voiced their concern “that these recent developments will undermine the ITA and agreed to work together to ensure that the integrity and original spirit of the ITA is
maintained.”

Neuffer said, “The 21 economies of APEC have again sent a unified and clarion call to the European Union that it should live up to its commitments under the ITA and stop slapping unjustified tariffs on products that should be duty free under this important trade agreement.”

The European Union (EU) has been applying duties as high as 14 percent on computer equipment and other hightech products, which represent the core of the digital economy. Under the ITA, the EU committed to eliminate tariffs on all ITA-covered products.

APEC ministers have publicly expressed their concern in the past over erosion of the ITA. Deepening their discussions on this issue, the APEC economies convened a workshop in the run-up to the senior officials meeting in Lima that placed a significant focus on preserving the ITA.

APEC’s growing frustration with the EU comes on the heals of remarks made in January by US Trade Representative Susan Schwab who said, "We are looking at going to resolution on the ITA with the World Trade Organization."

Seventy WTO Members, representing 97 percent of world trade in IT products, are participants to the ITA, which entered into force in 1997. World exports of ITA products over the past 10 years have more than doubled in dollar terms, reaching $1.45 trillion in 2005 with annual average growth of 8.5 percent.

The 21 APEC members are: Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore, Taiwan, Thailand, Vietnam and the United States. The APEC press release including the statement on the ITA can be found online at: http://www.apec.org/apec/news___media/media_releases/030308_pe_som1workplan.html.

ABOUT ITI

The Information Technology Industry Council (ITI) represents the nation’s leading high-tech companies and works to advance public policies that boost innovation and global prosperity. ITI helps member companies achieve their policy objectives through building relationships with Members of Congress, Administration officials, and foreign governments; organizing industry-wide consensus on policy issues; and working to enact tech-friendly government policies.

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