Re: Top Two National Projects China Must Concentrate On to advance it to the Next Lev
After CHina's asking to removal of many IT tech products from the list and therefore the talk got stalled. US group is writing letters to China to urge to change its mind.
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Global electronics and IT industry groups, including the Semiconductor Electronics Industry of the Philippines, Inc. (SEIPI), have banded together to push for a swift and ambitious tariff elimination initiative and significantly expand the Information Technology Agreement (ITA) in light of the suspension of negotiations following a strong move by China to protect its domestic industry.
In a statement, the 81 global industry associations from 31 countries stressed that the ITA, which is one of the most commercially successful trade agreements in the World Trade Organization (WTO), has helped drive innovation, accelerate productivity, increase employment, lower consumer prices, and bridge communities across the globe in ways unimagined 16 years ago when the ITA was established.
Product expansion of the ITA, as well as expansion of geographic scope of the agreement would yield immediate and substantial benefits, removing tariffs on a vast array of tech products not currently covered, the statement said.
The groups also appealed to China to reconsider its long list of sensitivities it submitted to the WTO for its participation in the negotiations to expand the product coverage of the ITA.
A letter dated July 23, 2013 and addressed to People's Republic of China vice premier Wang Yang, signed by 35 industry groups around the world, stressed its concern over the suspension of the ITA negotiations because of China's move to protect a huge number of products.
"As voiced by countries participating in the negotiations, this delay was necessary because China presented a disproportionately large product sensitivities list," the letter said.
In fact, it said, China's list was more than twice as long as any other country's sensitivities list and included a request for the removal of roughly 100 product lines from the negotiating table.
"While we appreciate China's involvement in this important initiative, your government's large sensitivities list has suddenly emerged as the chief obstacle to our shared goal of obtaining an ambitious ITA expansion outcome this year," the statement noted.
According to these groups, an ambitious, balanced, and commercially significant expansion of the ITA would provide an important boost to the WTO as an institution and the global economy.
By one good estimate, the global industry said that ITA expansion would add $190 billion to global GDP annually.
"As a significant player in the global tech industry, China stands to be one of the largest beneficiaries of an expanded ITA, which would give a boost to the Chinese economy and help to strengthen China's innovation capacity," said the statement.
"Mr. Vice Premier, we urge China to continue to view this moment in trade history as a leadership opportunity to bolster global commerce in information and communications technology goods, spur worldwide growth, and give greater relevance to the work of the WTO," the letter added.
The groups urged China to return to the negotiating table quickly with a significantly reduced sensitivities list, both qualitatively and quantitatively, so they can conclude a new ITA within the year.
Given that it took 16 years to finally get serious about expanding the ITA, there is no assurance of another opportunity to do this important work again anytime soon.
