[Federal Register Volume 62, Number 170 (Wednesday, September 3, 1997)]
[Notices]
[Pages 46545-46546]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-23368]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Information Technology Agreement; Comment Request
AGENCY: Office of the United States Trade Representative.
Trade Policy Staff Committee; Public Comments for Multilateral
Negotiations in the World Trade Organization (WTO) on Review and
Expansion of the Information Technology Agreement (ITA) or ``ITA II''
and Global Economic Commerce (GEC).
ACTION: Notice and request for comments.
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SUMMARY: The Trade Policy Staff Committee (TPSC) is requesting written
public comments with respect to the implementation and expansion of the
Information Technology Agreement, in particular: (1) Discrepancies
between current tariff nomenclature and emerging technology which may
affect the expected market access benefits to the United States of the
ITA; (2) additional information technology products which it would be
in the interests of the United States to include in the ITA; (3)
expansion of the ITA to ensure a tariff-free environment for
information products and services transmitted via the Internet; (4)
non-tariff barriers affecting trade in ITA products; and (5) possible
acceleration of ITA duty reductions previously agreed. Comments
received will be considered by the Executive Branch in formulating U.S.
positions and objectives for further development of the ITA, in
particular the procedures for consultations and review of product
coverage provided for by participants to the ITA on March 26, 1997.
They will be also be considered by the Executive Branch in developing
U.S. positions and objectives for implementing the President's
``Framework for Global Electronic Commerce'' of July 1, 1997.
DATES: Public comments are due by noon, September 30, 1997.
ADDRESSES: Office of the U.S. Trade Representative, 600 17th Street,
N.W., Washington, D.C. 20508.
FOR FURTHER INFORMATION CONTACT:
John Ellis, Office of WTO and Multilateral Affairs, USTR, (202-395-
6843); Barbara Chattin, Director for Tariff Negotiations, USTR, (202-
395-5097); or Matt Rohde, Director for Customs Affairs, USTR, (202-395-
3063).
SUPPLEMENTARY INFORMATION: The Chairman of the TPSC invites written
comments from the public on issues to be addressed in the course of
[[Page 46546]]
negotiations on review and expansion of the ITA. Any amendments to the
ITA resulting from these negotiations will be subject to approval by
all of the 42 current ITA participants (Australia, Canada, Costa Rica,
Czech Republic, El Salvador, Estonia, European Communities (on behalf
of 15 Member States), Hong Kong, Iceland, India, Indonesia, Israel,
Japan, Korea, Macau, Malaysia, New Zealand, Norway, the Philippines,
Poland, Romania, Singapore, Slovak Republic, Switzerland and
Liechtenstein, Taiwan, Thailand, Turkey and the United States). It is
expected that other participants to the ITA will be conducting similar
consultations with their private sectors.
BACKGROUND: During the Uruguay Round of multilateral trade
negotiations, the United States sought, but did not achieve, the
reciprocal elimination by WTO members of tariffs on information
technology products. With the encouragement and support of a broad
coalition of major U.S. information technology manufacturers, the
Administration continued to pursue this objective after the conclusion
of the Uruguay Round. In December 1996, United States and 36 other
countries and separate customs territories reached agreement to
eliminate tariffs on a wide range of information technology products.
The resulting agreement covers computers and computer equipment,
semiconductors and integrated circuits, computer software products,
telecommunications equipment, semiconductor manufacturing equipment and
computer-based analytical instruments. The Information Technology
Agreement (ITA), the recently concluded WTO agreement on basic
telecommunications services, and other trade initiatives are all
elements of the ``Framework for Global Electronic Commerce'' issued by
President Clinton and Vice President Gore on July 1, 1997. The
Administration's goal is to establish a seamless global electronic
marketplace free from tariff and other market access barriers (such as
those created by standards-related activities). The Framework report
can be downloaded from the Internet, at http//:www.iitf.nist.gov/
electronic__commerce.htm.
The ITA is being implemented under the auspices of the WTO. The WTO
estimates that products covered by the ITA are worth approximately $500
billion in 1995 global trade. Industry sources estimate that U.S.
exports account for approximately one-fifth of this total. Detailed
information on the ITA, including the December 1996 Ministerial
Declaration on Trade in Information Technology Products and its
``product coverage'' annex and the March 1997 decision which also
includes detailed information on the ITA review can be found on the
Internet at http://www.wto.org/wto/goods/infotech.htm.
On June 30, 1997, under the authority provided in Section 111(b) of
the Uruguay Round Agreements Act, the President proclaimed the
reduction and eventual elimination, no later than the year 2000, of
duties on products covered by the ITA. As required by the agreement,
the United States implemented the initial ITA duty reductions on July
1, 1997. Likewise, other ITA participants will continue to reduce their
tariffs on the covered products in stages, achieving complete tariff
elimination for most products by the year 2000. The ITA, the recently
concluded WTO agreement on basic telecommunications services, and other
trade initiatives are all elements of the Administration's framework
for establishing a seamless global electronic marketplace.
At the March 26, 1997 meeting at the WTO in Geneva, ITA
participants agreed on a timetable for the first round of ``ITA-II''
negotiations. Beginning in October 1997, there will be a three month
``open season,'' in which participants will identify their priorities
for this process. Multilateral negotiations will begin in January 1998,
with a view to reaching agreement on any amendments or modifications to
the ITA by July 1998 and to implementing those changes on January 1,
1999.
Working with appropriate industry associations, the interagency
TPSC committee led by USTR is in the process of preparing negotiating
positions for these consultations. Interested U.S. parties are invited
to submit comments, by noon, September 30, 1997, on the following: (1)
Discrepancies between current tariff nomenclature and emerging
technology which may affect the expected market access benefits to the
United States of the ITA; (2) additional information technology
products which it would be in the interests of the United States to
include in the ITA; (3) expansion of the ITA to ensure a tariff-free
environment for information products and services transmitted via the
Internet; (4) non-tariff barriers imposed by other ITA participants
which may hinder expected market access benefits to U.S. exporters on
products covered by the ITA; and (5) possible acceleration of ITA duty
reductions previously agreed. We are requesting this advice pursuant to
19 U.S.C. 2155.
All comments will be consistent in developing U.S. positions and
objectives for ITA-II negotiations, and for implementing the
President's ``Framework for Global Electronic Commerce.'' Information
on products or practices subject to these negotiations should include,
whenever appropriate, the import or export tariff classification number
for the product concerned.
Persons submitting written comments should provide a statement, in
twenty copies, by noon, September 30, 1997, to Gloria Blue, Executive
Secretary, TPSC, Office of the U.S. Trade Representative, Room 503, 600
17th Street, NW., Washington, D.C. 20508. Non-confidential information
received will be available for public inspection by appointment in the
USTR Reading Room, Room 101, Monday through Friday, 9:30 a.m. to 12:00
noon and 1:00 p.m. to 4:00 p.m. For an appointment call Brenda Webb on
202-395-6186. Business confidential information will be subject to the
requirements of 15 CFR Sec. 2003.6. Any business confidential material
must be clearly marked as such on the cover letter or page and each
succeeding page, and must be accompanied by a non-confidential summary
thereof.
Frederick L. Montgomery,
Chairman, Trade Policy Staff Committee.
[FR Doc. 97-23368 Filed 9-2-97; 8:45 am]
BILLING CODE 3190-01-M