INFORMATION TECHNOLOGY PRODUCTS AGREEMENT (ITA)

30.04.2024

 INFORMATION TECHNOLOGY PRODUCTS AGREEMENT (ITA)

Why in the news?                                                                                                                                   

               India and Chinese Taipei have jointly requested the World Trade Organization (WTO) not to adopt any ruling regarding New Delhi’s import duties on specific information and technology (ICT) products until July 26.

Key Points

• ICT products fall under the WTO’s Information Technology Products Agreement (ITA). India’s involvement with the ITA has led to disputes due to the imposition of customs duties on certain ICT products.

INFORMATION TECHNOLOGY PRODUCTS AGREEMENT (ITA) :

• The Information Technology Agreement (ITA) is a significant trade agreement under the World Trade Organization (WTO) that was adopted in 1996.
• The ITA aims to eliminate all import duties and other charges on specified information technology products.
• The commitments under the ITA become binding on a country under Articles II of the General Agreement on Tariffs and Trade (GATT) only if they are incorporated into the Goods Schedule.

Key aspects of the ITA:

• Trade Liberalization: The ITA promotes trade liberalization by eliminating duties on IT products among participating WTO member countries.
• Product Coverage: The agreement covers a wide range of IT products, including computers, telecommunication equipment, semiconductors, software, and scientific instruments.
• Expansion: The ITA has been expanded since its inception to include more products and participants, reflecting the evolving nature of technology and global trade.

                               Source: Business standard