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(STRASBOURG) – A WTO deal struck by the EU and 24 countries to stop charging custom duties on trade in 201 different high-demand information technology products received the green light Wednesday by the EU Parliament.
The World Trade Organization (WTO) deal, whose signatories include Japan, China and the USA, covers products such as video game consoles, medical imaging machines and touch screens. As it has already been signed the EU, the European Parliament’s approval brings it into force.
“Through the revision and expansion of the Information Technology Agreement, now the new generation of modern IT products can also benefit from customs facilitation,” said the Parliament’s rapporteur Godelieve Quisthoudt-Rowohl MEP. “This is an important milestone for the WTO, and Europe was the driving force for it. European companies are protected by these global trade facilitation measures from unfair competition.”
The expanded WTO Information Technology Agreement (ITA) is the biggest tariff-cutting deal in WTO history. It has been signed by 25 WTO members, with the EU counting as one. Australia, Canada, China, Japan, the USA, and South Korea are on board.
By joining the pact, members undertake to gradually eliminate customs duties on 201 listed information technology products, such as videogame consoles, GPS navigation systems, magnetic resonance imaging machines, telecommunications satellites, touch screens, and video cameras. Tariffs are to be reduced from 1 July 2016, and eliminated by 1 July 2019, with a more gradual phasing out of duties on imports that are sensitive for the EU industry (such as TV screens).
The value of the EU exports of products covered by the ITA is currently EUR 189 billion. The EU Commission estimates the likely gain to EU exporters at 5 – 8.3 billion, including the benefits to EU industry of being able to import development hardware more cheaply.
