[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//:<a href="http://www.iitf.nist.gov/
electronic__commerce.htm">www.iitf.nist.gov/
electronic__commerce.htm</a>.
    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