According to ITIF estimates, extending the trade agreement that eliminates tariffs on IT products may add $766 billion to the global economy over ten years.

According to a recent report from the Information Technology and Innovation Foundation (ITIF), expanding the Information Technology pact (ITA) could add $766 billion to the global economy over the next ten years. The ITA, which eliminates tariffs on certain goods, has not been amended since 2015. The proposed expansion, known as "ITA-3," would cover over 400 unique products and has the potential to boost economies worldwide.

The ITA has already been ratified by 82 nations since its inception in 1996. In 2015, an additional 53 nations expanded the ITA, removing tariffs on an extra $1.3 trillion in international trade. The ITIF believes that further liberalization of tariffs for the rapidly expanding universe of technologies powered by information and communications technologies would help diversify and improve the resiliency of global supply chains.

The expanded product list for the ITA-3 includes high-definition televisions, energy-efficient devices, commercial drones, digital manufacturing tools, medical equipment, and components for the semiconductor industry. Stakeholders have identified over 300 more prospective ITA inclusion candidates as technologies continue to advance. The report from ITIF examines the potential effects of ITA-3 on the economies and tariff revenue of the European Union and 21 other countries.

ITIF's findings show that India, Kenya, Pakistan, and Nigeria would experience the most relative GDP growth over ten years. These countries could see their economies grow by 2.5 percent, 2.3 percent, 2 percent, and 1.7 percent, respectively. However, all 22 nations included in the report would benefit from stronger economies overall.

The ITA growth could result in a $208 billion increase in GDP over ten years, boost IT goods exports by $2.8 billion, and create around 60,000 new jobs. These figures highlight the potential economic benefits of expanding the ITA and fostering the adoption of technologies that drive innovation and productivity across all sectors of the economy.

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According to a press release, an ever-growing number of items rely on information technology, but the Information Technology pact (ITA), the trade pact that does away with tariffs on certain goods, hasn't been amended since 2015. According to a new report from the Information Technology and Innovation Foundation (ITIF), the top think tank for science and technology policy, expanding it into what would be the "ITA-3" could cover more than 400 unique products and boost the global economy by more than $750 billion over ten years. The ITA has already been ratified by 82 nations since it was first signed in 1996. 53 nations expanded the ITA in 2015, removing tariffs on an extra $1.3 trillion in international trade in 201 IT parts, components, and finished goods.

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Stephen Ezell said: “The ITA has been one of the World Trade Organization’s most successful agreements, spurring adoption of technologies that drive innovation and productivity across all sectors of the economy. Expanding the ITA would generate significant growth for all nations that participate. A further liberalization of tariffs for the rapidly expanding universe of technologies powered by information and communications technologies would help diversify and improve the resiliency of global supply chains, because it would bring more developing economies into the global technology ecosystem. The resulting growth would raise household incomes and support a continued expansion of technology jobs worldwide.”

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Stakeholders have identified over 300 more six-digit product codes under the Harmonized Commodity Description and Coding System as prospective ITA inclusion candidates as technologies continue to advance, including over 400 distinct IT items. High-definition televisions, energy-efficient devices like storage batteries, solar cells, and LED lighting, commercial drones, digital manufacturing tools like industrial robots and 3D printers, medical equipment like patient monitoring systems, and components and supplies for the semiconductor industry could all be included in the expanded product list. The report from ITIF looks at the effects that a "ITA-3" would have on the economies and tariff revenue of the European Union (EU) and 21 other countries, including Argentina, Brazil, Cambodia, Canada, China, Costa Rica, China, India, Indonesia, Japan, Kenya, Lao PDR, Malaysia, Mexico, Nigeria, Pakistan, South Korea, Taiwan, Thailand, the United States, the United Kingdom, and Vietnam. ITIF's conclusions include:The most relative GDP growth over ten years would occur in India, Kenya, Pakistan, and Nigeria (2.5 percent, 2.3 percent, 2 percent, and 1.7 percent, respectively), although all 22 nations would experience stronger economies overall.

The ITA growth may boost the country's GDP by $208 billion over the course of ten years, increase exports of IT goods by $2.8 billion, and support the creation of about 60,000 new employment.

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