Australia gets tariff cuts on popular high-tech goods

EXTRA >>

TARIFFS on about  $19 billion dollars’ worth of popular high-technology goods imported into Australia will be eliminated under an agreement reached by the World Trade Organization (WTO).

Trade and Investment Minister Andrew Robb said the agreement, finalised at the recent Nairobi meeting, corrects the original Information Technology Agreement (ITA) struck back in 1996, when recent technologies such as touch screens, GPS devices, and lithium ion batteries were not covered.

Mr Robb said for the first time the ITA will now cover a range of consumer electronics including headphones, loud speakers and amplifiers, as well as video game consoles.  Medical devices such as magnetic resonance imaging (MRI) machines, electro cardiograph (ECG) machines and bionic ear implants – such as those made by Cochlear – will also be covered. 

“The agreement reached between more than 50 WTO members to expand the ITA means global tariffs of up to 35 percent will be eliminated on 201 high technology products, covering over US$1.3 trillion in global trade,” Mr Robb said.

“By eliminating tariffs on these technology products we immediately reduce their cost, potentially boosting demand and stimulating further innovation.  The ITA expansion will make it much easier to ship these heavily traded goods around the globe.”

Mr Robb said the ITA demonstrates that the WTO can still achieve practical outcomes to liberalise global trade.

“It has been 18 years since the WTO last agreed to eliminate tariffs.  The ITA is a good opportunity for the WTO to demonstrate its ability to deliver ambitious trade liberalising outcomes,” Mr Robb said.

Australia imports about US$18.9 billion worth of goods covered under the new agreement, and exports around US$3.6 billion. 

“Eliminating tariffs on these goods in Australia and throughout the globe will reduce costs across a range of sectors including retail, technology industries such as software design, and IT service providers,” Mr Robb said.

Australia plans to begin implementing its commitments on January 1, 2017. 

www.dfat.gov.au

Further information on the ITA can be found on the Department of Foreign Affairs and Trade websitehttp://dfat.gov.au/trade/agreements/Pages/information-technology-agreement.aspx.

ends