Transcript Expanding the ITA June 2013

Expanding the Information
Technology Agreement
APEC Secretariat, Policy Support Unit
20-21 June 2013
Presented by
Carlos Kuriyama
Senior Analyst, Policy Support Unit
Advancing Free Trade for Asia-Pacific Prosperity
©2012 APEC Secretariat
Copyright © 2012 APEC Secretariat.
APEC’s momentum to
support ITA expansion
• ITA was initially signed on December 1996 and entered
into force on 1 April 1997.
• Expansion is important. For example, some products are
obsolete and new IT products are becoming available.
• APEC could take a leadership role in the expansion talks.
APEC accounts for nearly 80 percent of the world trade of
ITA products.
• APEC could be the catalyzer to reach an agreement on the
ITA expansion at WTO.
• The ITA expansion would be a key deliverable for the
WTO Ministerial Conference in Bali, December 2013.
Copyright © 2012 APEC Secretariat.
Market size of current ITA
products
World Trade of ITA products tripled from 1996 to 2011, but
APEC Trade of ITA products almost quadrupled…
World Trade
Original ITA signatories - Exports
Original ITA signatories - Imports
APEC - Exports
APEC - Imports
Source: UN COMTRADE; WITS
Average Flows (USD billion)
Growth
A: 1996-97 B: 2003-04 C: 2010-11 1996-2011
478.7
1,032.6
1,478.6
208.9
431.8
762.7
853.6
97.7
472.6
772.8
1,092.6
131.2
297.6
743.7
1,174.1
294.5
318.1
701.1
1,218.0
282.9
NOTE: Trade values are higher. Neither most of the “ex-out”
HS subheadings, nor the 13 product descriptions in ITA not
associated with any HS code (Attachment B)are included in
the table.
Copyright © 2012 APEC Secretariat.
Types of products within ITA
Most of the ITA products’ trade comes from semiconductors;
parts and accessories and computers. Semiconductors and
telecommunications equipment are increasing their share
Source: UN COMTRADE; WITS
Copyright © 2012 APEC Secretariat.
Share of ITA products in trade
flows is declining…
ITA products’ trade decelerated in recent years and their share
in world trade and APEC trade declined.
Copyright © 2012 APEC Secretariat.
Declining growth rates…
During the period 1996-2011, ITA products’ trade decelerated
sharply…
World Trade
Original ITA signatories - Exports
Original ITA signatories - Imports
APEC - Exports
APEC - Imports
Source: UN COMTRADE; WITS
Average Flows (USD billion)
Growth 1996-2011
A: 1996-97 B: 2003-04 C: 2010-11 1st half 2nd half
478.7
1,032.6
1,478.6
115.7
43.2
431.8
762.7
853.6
76.6
11.9
472.6
772.8
1,092.6
63.5
41.4
297.6
743.7
1,174.1
149.9
57.9
318.1
701.1
1,218.0
120.4
73.7
Growth rates in the 2nd half < Growth rates in the 1st half
Copyright © 2012 APEC Secretariat.
Obsolescence of some ITA
products
World Trade of selected ITA products:
Copyright © 2012 APEC Secretariat.
Obsolescence of some ITA
products
Examples of ITA products with
declining trade:
-
A subgroup of 32 HS ITA
subheadings with declining trade
was selected:
Word-processing machines
Accounting machines
World Trade of 32
Share in
Electronic calculators
HS ITA subhadings USD billion World Trade
Teleprinters
Average 2003-04
287.6
27.9
Magnetic tapes
Average 2010-11
33.7
2.3
Analogue or hybrid computers
Input or output units
Trade declined between 2003-04
Facsimile machines
and 2010-11 in 88.3 percent!
Metal oxide semiconductors
Direct electrostatic photocopiers
Copyright © 2012 APEC Secretariat.
Goods and services out of ITA
Among products not included in ITA:
- DVD, VCD, MP3, MP4 players
- GPS devices
- Multifunctional devices that print, copy and scan
- Scientific, medical instruments with IT applications:
MRI equipment, compound optical microscopes, etc.
- Consumer electronics. For example, TV monitors.
Services trade in IT sector is increasing and medium of
transactions is changing from goods to services, but
services not included in ITA.
Copyright © 2012 APEC Secretariat.
Growing interdependence of Global
Production Chains for ITA products
Example: iPhone, which is assembled in China
DRAM memory,
applications
processor from
Korea
Touchscreen and
camera from
Chinese Taipei
Baseband, power
management and
transceiver from
Germany
Flash memory and
display module
from Japan
Audio codec,
memory and
touchscreen
controller from
USA
Copyright © 2012 APEC Secretariat.
Expansion of ITA membership
• Increasing ITA membership will allow covered products to have
duty-free access to a much larger market.
• Five APEC members are not part of ITA yet (Brunei Darussalam;
Chile; Mexico; PNG and Russia). Russia working on ITA Schedule
of Commitments now.
• Other important non-APEC economies not part of ITA are
Argentina, Brazil, South Africa and Tunisia.
• The aforementioned economies (except Russia) represent a
market of 438 million inhabitants. Tariff of ITA products range
from 0 percent to 30 percent in these economies.
Copyright © 2012 APEC Secretariat.
Proposals to expand ITA
product coverage
Current ITA Products and Potential ITA Products’ Trade in
USD billion (average 2010-11)
APEC Imports - ECIPE Proposal
ITA products
$1,218.0
Proposal $573.7
APEC Imports - Compilation of
proposals at WTO
ITA products
$1,218.0
Proposal $542.0
APEC Exports - ECIPE Proposal
ITA products
$1,174.1
Proposal, $584.6
APEC Exports - Compilation of
proposals at WTO
ITA products
$1,174.1
Proposal, $566.8
World Trade - ECIPE Proposal
ITA products
$1,478.6
Proposal $942.9
World Trade - Compilation of
proposals at WTO
ITA products
$1,478.6
Proposal $923.3
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
Source: UN COMTRADE; WITS; ECIPE and USITC
Copyright © 2012 APEC Secretariat.
Final remarks
• In 1996, APEC was instrumental in the negotiations that
originated the ITA. Now, APEC can play similar role to expand it.
• An expanded ITA will assist to strengthen the multilateral system.
• APEC can provide the momentum and assist the multilateral talks
to achieve an expanded ITA and facilitate a key deliverable in the
WTO Ministerial Conference at Bali in December 2013
• Rapid technological changes, obsolescence of IT products and
growing IT interdependence of global production chains are
compelling reasons to expand ITA.
• Better market access for IT products is critical to foster
innovation, spur productivity and boost economic growth.
Copyright © 2012 APEC Secretariat.
Further Information
APEC Website - www.apec.org
Policy Support Unit - www.apec.org/About-Us/PolicySupport-Unit.aspx
APEC Secretariat, Policy Support Unit
35 Heng Mui Keng Terrace
Singapore 119616
Telephone: (65) 6891 9400
Fax: (65) 6891 9419
Email: [email protected]
Copyright © 2012 APEC Secretariat.
Expanding the Information
Technology Agreement
APEC Secretariat, Policy Support Unit
20-21 June 2013
Presented by
Carlos Kuriyama
Senior Analyst, Policy Support Unit
Advancing Free Trade for Asia-Pacific Prosperity
©2012 APEC Secretariat
Copyright © 2012 APEC Secretariat.