Global moves to axe trade tariffs

Forty governments responsible for the movement of almost $600 billion of IT trade formally agreed to drop tariffs on high-tech goods last week.

The World Trade Organisation (WTO) Ministerial Declaration on Trade in Information Technology (ITA) will cut customs duties on computer and telecoms products starting on 1 July and ending by the year 2000.

But the deadline has been extended for seven countries, including Korea and Chinese Taiwan, which were the world?s fifth and seventh leading exporters of IT products in 1995 respectively.

The WTO participants, which included all 15 mem- ber states of the EC, the US, Japan, India and Thailand, will reduce and finally drop tariffs in four stages.

Renato Ruggiero, WTO director general, said: ?The impact of these agreements on improved living standards for the world?s citizens should not be underestimated. The computers, semiconductors, telecoms hardware and computer software that are included in the ITA are the conduit for the delivery of information.?

He added: ?By making such products more affordable, we move one step closer to the vision of a telephone in every village of the world.?

Approval for Panama and Poland remains to be negotiated, and two other members of the WTO, the Philippines and El Salvador, will join the ITA at a later date.