WASHINGTON-The Clinton administration last week proposed to expand the global trade agreement that eliminates tariffs on telecom and information technology products by 2000.
With developing countries increasingly turning to wireless technology for mobile and basic communications, the initiative would further improve the ability of U.S. wireless manufacturers, like Motorola Inc. and Lucent Technologies Inc., to do business abroad.
The Information Technology Agreement, or ITA, was reached at Singapore in December 1996. The pact entered into force last July. More ITA talks will take place this summer with an eye on getting the agreement implemented beginning in January.
The 43 countries that signed the ITA represent almost 95 percent of the world trade in telecom-information technology equipment, a sector that accounts for nearly $1 trillion in global production and more than $500 billion in international trade flows.
“I am counting on the continued collaboration and cooperation that we have enjoyed thus far between the government and the private sector to achieve a package for ITA II,” said Charlene Barshefsky, U.S. trade representative.
USTR said it wants ITA II to cover a broader range of products, such as computer-based scientific and analytical equipment, global positioning systems and printed circuit boards.
The agency said it has received private sector requests to add nearly 500 products to the original ITA pact.
In the meantime, USTR said it is consulting with the U.S. International Trade Commission for advice on those requests to expand the ITA.
