ITIF Encourages Developing Countries to Sign on to Information Technology Agreement

Developing countries could boost their economies by billions of dollars if they signed on to the 1996 Information Technology Agreement, reported the Information Technology and Innovation Foundation Monday. The ITA eliminates tariffs on hundreds of information and communication technology products for its current 82 signatory countries, but some developing countries haven’t signed because they don’t want to give up income generated by targeted tariffs, ITIF said. Economic growth and associated increase in tax revenue that would accompany ITA “would bolster Argentina’s economic growth by an estimated 1.52 percent, or $12.7 billion in additional output, in the 10th year; Cambodia’s by 0.98 percent or $320 million; Chile’s by 0.23 percent or $920 million; Kenya’s by 1.29 percent or $1.4 billion; Pakistan’s by 1.30 percent or $4.6 billion; and South Africa’s by 0.17 percent or $770 million.” ITIF said Chile and South Africa would see a smaller economic impact from signing on because “these countries already have relatively low tariff rates on ITA-covered ICT products.”