Involving US$1.3 trillion, or 7 percent, of total global trade on more than 200 categories of products annually, the accord was reached by 54 WTO members July 18 in Geneva. Detailed implementation plans are set to be concluded during the WTO’s 10th Ministerial Conference in Nairobi at year-end.
Major items covered include digital cameras, GPS systems, light-emitting diode, or LED, backlight modules, machine tools, medical products like MRI machines, semiconductors, telecommunications satellites and touch screens.
Director-General Yang Jen-ni of MOEA’s Bureau of Foreign Trade said these high-tech devices account for US$90 billion, or 30 percent, of Taiwan’s shipments each year. “This scheme should see export duties reduced by US$1.14 billion annually for local producers.
“Counting in import tariff losses, we project the net benefits to reach US$820 million annually once the deal goes into effect.”
Commenting on the absence of flat panels on the list, Yang said the government will continue working on a raft of policy instruments, such as environmental goods and services negotiations, as well as multilateral trade pacts, to assist local manufacturers strengthen competitiveness in the global marketplace.
Hailed as the first major tariff-cutting deal at the WTO in 18 years, ITA is viewed by participating members as conducive to facilitating lower prices, job creation and gross domestic product growth around the world.
Under the terms of the agreement, most tariffs on the products will be eliminated in four phases within three years beginning 2016. It also specifies a commitment to tackling nontariff barriers in the IT sector, and reviewing the makeup of the list to ensure it reflects technological developments. (YHC-JSM)
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