UPDATES ON INFORMATION TECHNOLOGY AGREEMENT (ITA) EXPANSION Noor Wahida Noordin Ministry of International Trade & Industry Malaysia 20 June

OUTLINE 2 1.BACKGROUND ON ITA EXPANSION 2.NEED FOR ITA EXPANSION 3.CURRENT STATE OF PLAY 4.MALAYSIA’S PARTICIPATION 5.SUMMARY

BACKGROUND OF ITA EXPANSION 3 The process was initiated by 6 ITA participants (Japan, US, EU, Korea, Chinese Taipei, Costa Rica) Technical Group on ITA expansion formed. First Technical Group meeting held on 1 June 2012 at Japanese Mission in Geneva 11 rounds of Technical Group meetings have been held. Last one being week of 27 May 2013 The meetings aim at developing a consolidated working list for the ITA product expansion

BACKGROUND OF ITA EXPANSION 4 As per the 1996 ITA, concessions will be extended to all WTO members on MFN basis. TARGET 1 st :Complete negotiations on Consolidated List Before the WTO Summer break in July (2 more meetings) 2 nd :Be one of the deliverables at the WTO 9th Ministerial Conference in Bali, which will be held on 3-6 December 2013.

NEED FOR ITA EXPANSION 5 Technology advancement lead to sophisticated products Convergence of E&E towards ICT Limited scope of current ITA e.g. does not cover multifunction products Need for a continuous update since the list is unchanged since 1996

CURRENT STATE OF PLAY 6 25 economies (counting the EU as 1) participating in the Technical Meeting for ITA expansion. Australia, Canada, China, Chinese Taipei, Costa Rica, Croatia, El-Salvador, EU, Guatemala, Hong Kong, Iceland, Israel, Japan, Malaysia, Mauritius, Montenegro, New Zealand, Norway, Philippines, Republic of Korea (ROK), Singapore, Switzerland, Thailand, Turkey and USA.

CURRENT STATE OF PLAY Cont... 7 IT relatedness of some products proposed Inclusion of raw material products such as chemical Products cover multiple sectors Implementation by customs of ex-out products.

CURRENT STATE OF PLAY Cont.. 8 ITA 2 Products capable of processing digital signals Products receiving digital signals ICT manufacturing equipment Related component and parts EXAMPLES OF PRODUCTS COVERED IN THE CURRENT CONSOLIDATED LIST OF ITA 2

CURRENT STATE OF PLAY Cont.. 9 Total number of countries supporting a particular tariff line accounts for at least 50% of world tradeTotal number of countries supporting a particular tariff line accounts for at least 50% of world trade Has at least 8 members supportingHas at least 8 members supporting OR LAST MEETING, MEMBERS AGREED Tentatively to apply the following criteria (proposed by EU) for filtering proposals under Attachment A and B to focus discussions on the non binding draft final list Tentatively to apply the following criteria (proposed by EU) for filtering proposals under Attachment A and B to focus discussions on the non binding draft final list Members to register sensitivities without prejudice on the draft final list Members to register sensitivities without prejudice on the draft final list

CURRENT STATE OF PLAY cont.. 10 Attachment A Defines products by HS code (tariff heading) at 6-digit code Currently comprise of 256 tariff lines Attachment B Defines products by description without specifying the HS code Currently comprise of 6 product descriptions CONSOLIDATED LIST NOW COMPRISE OF:

CURRENT STATE OF PLAY Cont.. 11 Filtered Consolidated List Sensitivities of Members Among areas of discussion for the next meeting (Week of 24 June 2013) Discussions are expected to be more intensive and technical in nature

MALAYSIA’S PARTICIPATION 12 Participating actively in the Technical Group meetings held in Geneva, Switzerland. Participating actively in the Technical Group meetings held in Geneva, Switzerland. Have held numerous consultations with the industry and relevant Government Agencies in Malaysia Have held numerous consultations with the industry and relevant Government Agencies in Malaysia Is currently supporting: Is currently supporting: 167 out of the 256 tariff lines under Attachment A; and 167 out of the 256 tariff lines under Attachment A; and 2 out of 6 product descriptions under Attachment B 2 out of 6 product descriptions under Attachment B

SUMMARY 13 The ITA expansion can be one of the potential non-DDA deliverable for the 9th Ministerial Conference in Bali. The ITA expansion can be one of the potential non-DDA deliverable for the 9th Ministerial Conference in Bali. Intensive technical discussions are still on-going to finalise the consolidated list for negotiations. Intensive technical discussions are still on-going to finalise the consolidated list for negotiations. Members are seeking other ITA Members to actively participate in the technical discussions and non-ITA WTO Members to consider joining the ITA. Members are seeking other ITA Members to actively participate in the technical discussions and non-ITA WTO Members to consider joining the ITA.

14 THANK YOU