The Information Technology Agreement: An Assessment of World Trade in Information Technology

Abstract

The Information Technology Agreement (ITA), a multilateral agree- ment emerging from the Uruguay Round, eliminates tariffs on specific technology and telecommunications products for member countries. Primary goals of the ITA are increased trade and com- petition through trade liberalization for information technology (IT) products, and the global diffusion of information technology. The ITA went into effect in 1997 with 29 WTO member countries and now includes 72 WTO members. It covers over 95 percent of total world trade in IT products, currently estimated at $4 trillion annually. The emergence of complex global supply chains for IT products, rapid deployment of new technologies, and technol- ogy convergence since the ITA's inception, shine new light on the role of the ITA in global trade. This paper provides an overview of the ITA, describes the level of tariff liberalization associated with membership, and discusses the changing composition of ITA mem- bership. The paper further examines ITA trade between 1996 and 1

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