Below is a 12/12/96 Reuters article:
Thursday December 12 6:59 AM EST
Breakthrough on Global Infotech Deal
SINGAPORE (Reuter) - Up to 30 countries looked set on Thursday to scrap tariffs on billions of dollars worth of information
technology products after Europe and the United States agreed on the proposed deal.
European Trade Commissioner Sir Leon Brittan hailed the proposal, thrashed out during three days of intense meetings at the
inaugural World Trade Organization (WTO) in Singapore, as one of the biggest steps toward global free commerce.
"The basis of what we have agreed with the United States provides for a deal on ITA (information technology agreement)
which will be a huge advance for the world economy," Brittan told a news conference.
The Big Four trade powers -- the United States, Japan, the European Union and Canada -- had set the pact as a key target
to declaring this week's WTO a real success.
"This is extraordinarily positive," U.S. spokesman Jay Ziegler told reporters.
A senior Japanese trade official told reporters about 30 countries were likely to express their intention to join the deal before
the end of the WTO meeting on Friday.
He said the ITA, which aims to eliminate tariffs on the world's $600 billion computer and telecommunications industries, was
likely to cut tariffs in four stages starting from 1997 and finishing in 2000.
In addition to the EU, U.S., Canada and Japan, many members of the Association of Southeast Asian Nations (ASEAN),
other newly industrialized economies and Oceanic countries as well as non-EU European nations such as Switzerland and
Norway were likely to join, the Japanese trade official said.
Industry analysts the pact could speed up the development of the global information technology sector, which was currently
growing at around 15 percent per year.
"If you remove tariff barriers it will foster more competition, innovation and specialisation," said David Toh, investment analyst
at ING Barings, part of Dutch Bank ING.
Tim Fischer, Australian vice premier and trade minister, told a news conference Australia supported the proposed ITA.
"Yes, we are supporting the Information Technology initiative," he said in response to reporters' questions after the
announcement of the U.S.-EU deal.
Announcing the terms of the deal worked out with acting U.S. trade representative Charlene Barshefsky, Brittan said the final
deal still depended on countries representing about 90 percent of world trade in the sector joining the pact by March 15,
1997.
"Clearly, both Europe and the United States made it clear that this is not a bilateral agreement. It's meant to be an agreement
covering the countries in the world most involved in this whole area of activity," Brittan said.
He said the 90 percent was not "a rigid barrier," although U.S. officials stressed that it was essential.
"We have had to work very hard to get to this point," Ziegler said. "Now the critical objective is to meet the 90 percent
product coverage threshold, because if we don't do that the agreement doesn't take effect."
Some Asian members have already indicated support for the deal, but want flexibility over the timing of the tariff cuts.
The deal would cover the bulk of industrial information technology products, as well as digital photocopiers and capacitors --
circuits used in electronic equipment-- while excluding consumer electronics and audio materials.
The United States, whose high-tech firms would likely profit most from the ITA, has taken the lead in the push to forge a pact.
Japan, also a huge player in the fast-growing sector, has backed the drive strongly. |
