Experience and Observations from the Secretariat in Providing

Experience and Observations from the Secretariat in Providing Assistance to Interested WTO Members and Observers Presentation for IT Symposium – 19 October 2004 By Denby Probst, Counsellor, Market Access Division

Objectives of the Presentation • Overview of Process of becoming an ITA participant • Secretariat aid and technical assistance • Final provisions

Brief Overview of the ITA • Declaration signed on 13 December 1996 by 14 states or separate customs territories and the European Communities • There is no definition of information technology in the Declaration. Information technology products are only defined by their inclusion in Attachment A or Attachment B of the Declaration • Bind and eliminate customs duties and other duties and charges on all products listed in Attachments A and B in the Annex to the Declaration ITA

The Attachments • Attachment A, Section 1 -Lists products by HS classification • Attachment A, Section 2 -Semiconductor manufacturing and testing equipment; listed by HS code and some “for attachment B” items • Attachment B-Products listed by description; no HS classification

The ITA Today • 63 Participants (including the Member states of the European Communities) Albania Australia Bahrain Bulgaria Canada China Costa Rica Croatia Egypt El Salvador EC Georgia Hong Kong, China Iceland India Indonesia Israel Japan Jordan Korea Kyrgyz Rep. Macao, China Malaysia Mauritius Moldova Morocco. New Zealand Norway Oman Panama Philippines Romania Separate Customs Territory of Taiwan, Penghu, Kinman and Matsu Singapore Switzerland Thailand Turkey United States

Initial Discussions with Interested Delegations • Documentation – WT/MIN(96)/16 – Examples of schedules • Process – Submisson of schedule to Committee meeting • Assistance – Varies by participant, provide what is needed

Making the Decision to Join • Political will • Decision by appropriate authorities in capital • Consultations with domestic producers, consumers, importers, exporters, advocacy groups, etc. . .

First Draft Schedule • Prepared by: – the Member concerned – the Secretariat – Joint effort • Comprised of: – Loose-leaf schedule of commitments – Attachment B – Staging Matrix

Verification of Schedules • Procedures outlined in G/IT/M/2 – "Any WTO Member, State or separate customs territory in the process of acceding to the WTO, hereinafter referred to as government, that would like to become a participant to the Ministerial Declaration on Trade in Information Technology Products should send a formal request to the Director-General of the WTO and submit a draft schedule of its commitments for verification. If the draft schedule is in line with the conditions set out in the Ministerial Declaration, it would only need to be verified in the usual way, first informally by the Secretariat[1] and then in the Committee, and unless there are objections, the government in question could become a participant. If, however, the government in question would want to deviate from the conditions set forth in the Declaration, this would have to be negotiated between the government concerned and the participants before its draft schedule is submitted for verification. " • Speed & accuracy – Streamlined a labor intesive process – Ensures accuracy, especially minute details • Practical Experience

Next Steps Draft schedule discrepancies found verification clean verification continues between Secretariat and country concerned Proceed to Committee process

Final Verification Sheet

Before the Meeting • Letter indicating intent to join accompanied by final verified schedule sent to the Secretariat • Proposed schedule, verification sheet, and accompanying details faxed to ITA participants • Consultations with ITA participants

Becoming a Participant • The Committee meeting – ITA Committee to take such a decision – Agenda item—“New Participants“ – Interested delegation to state their interest and explain their schedule – Committee approval typically at this meeting

The Legal Process • Rectification and modification of Schedules (Decison of 26 March 1980 on Procedures for Modification and Rectification of Schedules of Tariff Concessions (BISD 27 S/25) – Letter requesting schedule to be circulated – Circulation of G/MA/TAR/RS/. . . document – 3 -month wait – Certification

Those in the Process of WTO Accession • Slightly different procedure than WTO Members • Commitments integrated into the Protocol of Accession • Timing typically linked to accession

Final Provisions • Domestic – Implementation – Parliamentary approval or similar legal procedures – Industry adjustment • WTO – Certification – Letter of acceptance

The Work of the Committee • Committee of Participants on the Expansion of Trade in Information Technology Products was established in 1997 to carry out the provision of the Ministerial Declaration • The Committee is open to all participants, and other WTO Member and acceding countries are invited as observers • Oversees matters of implementation, and any other issue related to the declaration

In Summary • Experiences vary by participant – Length of time – Level of commitments • Participant-driven process • Secretariat available at any stage of the process for assistance

Thank you • Questions ? Comments ? Contact details: denby. probst@wto. org