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Keywords: US International Trade Commission,
investigations, WTO, information technology agreement
In response to a request from the US Trade Representative, the
United States International Trade Commission (USITC) has launched
two investigations in anticipation of negotiations on the potential
expansion of the World Trade Organization's (WTO) Information
Technology Agreement (ITA).
The investigations are based on a list of certain information-
and communications-technology (ICT) products that have been
proposed to receive duty-free treatment under the expansion of the
ITA.
The first report, expected to be completed in October 2012, will
identify both ICT and non-ICT uses of the products in question, as
well as any products that are import-sensitive in the United
States. The ITC is seeking written comments from the public
regarding the first report, with a deadline for submission of
September 6, 2012. The second report, to follow in February 2013,
will identify the significant producers and consumers of the
proposed products and the tariffs involved with each product in
various markets. The ITC will hold a public hearing on the second
report on November 8, 2012, and the deadline for written
submissions on this report is November 20, 2012.
Background
The ITA currently provides duty-free tariff treatment to a wide
range of electronics and other technology, including computers,
semiconductors, software, telecommunications equipment and
semiconductor manufacturing equipment. The list has not been
changed since the ITA was signed in 1996, despite continuing
innovation in the industry. Members of the ITA agreed in May 2012
to expand the agreement's product coverage. Formal negotiations
are expected to begin in September 2012.
Congress has periodically delegated authority to the President
to negotiate and proclaim reductions in tariffs under reciprocal
trade agreements, subject to specific conditions and limitations,
without requiring further congressional action. The Uruguay Round
Agreements Act provided certain limited, residual proclamation
authority to the President with respect to tariffs (the Uruguay
Round of negotiations, among other things, established the
WTO).
Specifically, Section 111(b) of the Act (19 U.S.C. 3521(b))
authorized the President of the United States, after notification
and consultation with Congress, to proclaim tariff modifications
that result from multilateral WTO agreements to eliminate or
harmonize tariffs—as long as the reduction applies to
articles contained in a tariff category that was the subject of
reciprocal duty elimination (so-called "zero-for-zero
elimination") or harmonization negotiations during the Uruguay
Round of multilateral trade negotiations. Thus, any agreement in
the WTO to expand duty-free coverage to such products would not
require additional legislation by Congress for the United States to
implement.
The United States used the authority provided for in Section
111(b) to implement the original ITA and an agreement on distilled
spirits in 1997, and on a number of occasions to implement
pharmaceutical sector agreements. There are a number of other
sectors that would also likely qualify for this Presidential
negotiating authority.
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This
Mayer Brown article provides information and comments on legal
issues and developments of interest. The foregoing is not a
comprehensive treatment of the subject matter covered and is not
intended to provide legal advice. Readers should seek specific
legal advice before taking any action with respect to the matters
discussed herein.
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