3 September 1997
Source: http://www.access.gpo.gov/su_docs/aces/aces140.html

    [Federal Register: September 3, 1997 (Volume 62, Number 170)]
    [Notices]
    [Page 46545-46546]
    From the Federal Register Online via GPO Access [wais.access.gpo.gov]
    [DOCID:fr03se97-121]

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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