NEW YORK: The World Trade Organization (WTO) members involved in the Information Technology Agreement (ITA) expansion achieved a breakthrough on the 24th of July.
The deal reached will eliminate in the future customs duties on 201 high-tech products, including semiconductors such as Multi-component integrated circuits (MCOs). The agreement is the biggest tariff-cutting deal in the WTO since 1996 from which both consumers and business will benefit. It is valued at around EUR 1 trillion and covers close to 90% of global trade in the products concerned.
Reportedly, the majority of the products’ customs duties will be eliminated within 3 years from the date of the application of the agreement, which is expected on 1st of July 2016. The coming months will be used to negotiate phase-outs for sensitive products in order to give industry time to adapt to a zero-tariff environment. The objective is to reach a formally final agreement in December at the 10th WTO Ministerial Conference in Nairobi.
The European Semiconductor Industry Association (ESIA) welcomes the agreement reached by the Governments involved in the negotiations for the expansion of the ITA and looks forward to its formal conclusion in December, ESIA writes in a statement.
