The Information Technology Agreement (ITA) has been one of the World Trade Organization’s (WTO’s) most successful plurilateral trade agreements. Originally signed in 1996 and to which 82 countries are now signatories, it eliminates tariffs on trade in hundreds of ICT products. In 2015, 53 countries joined together in completing (and implementing in 2016) an ITA expansion (ITA-2) that eliminated tariffs on an additional $1.3 trillion in annual global trade in 201 ICT parts, components, and final products.1 By eliminating tariffs on trade across hundreds of ICT products, the ITA has played an indispensable role in creating “zero-in/zero-out” tariff environments that have fostered the development and diversification of ICT global value chains (GVCs), helping bring developing economies previously locked out by their prohibitively high tariffs on ICT parts, components, and equipment and undeveloped telecommunications networks into GVCs for ICT goods production and assembly. Moreover, by reducing prices through tariff elimination, the ITA has facilitated greater adoption of the ICT products that lie at the core of the global digital economy and power the downstream innovative and competitive capacity of every household, enterprise, and industry that deploys them. This ITA-engendered increase in nations’ ICT capital stock leads directly to greater economic growth and innovation in developed and developing nations alike.
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