According to a recent press release, the Information Technology Agreement (ITA), a trade accord aimed at eliminating tariffs on various products, has remained unchanged since 2015. However, an expansion of the agreement, known as "ITA-3," could potentially include over 400 distinct products and contribute over $750 billion to the global economy over the next ten years.
The ITA has been hailed as one of the most successful agreements under the World Trade Organization, as it has driven the adoption of innovative technologies across different sectors of the economy. Stephen Ezell, a representative from the Information Technology and Innovation Foundation, emphasized that expanding the ITA would lead to significant growth for all participating nations. By reducing tariffs on technology powered by information and communications technologies, the agreement would enhance the diversification and resilience of global supply chains, integrating more developing economies into the global technology ecosystem.
Since its inception in 1996, the ITA has gained 82 signatory nations. In 2015, 53 new nations joined the agreement, expanding its reach to remove tariffs on an additional $1.3 trillion in international trade involving 201 IT components, parts, and finished goods. As technology continues to develop, over 400 different IT products have been proposed for possible inclusion in the ITA, leading to the creation of more than 300 new six-digit product codes. These products range from high-definition televisions and energy-efficient gadgets like solar panels, batteries, and LED lights, to commercial drones, industrial robots, and patient monitoring systems.
The expansion of the ITA to include these diverse products would not only boost global trade but also enhance household incomes and sustain the growth of tech-related employment worldwide. With the potential injection of over $750 billion into the global economy over the next decade, the ITA-3 expansion holds significant promise for the future of international trade and technological advancement.
