Europe

Overview

Europe continues to be an important market for information and communication technologies (ICT) manufacturers.  With approximately 60 percent of the EU population able to access the Internet and with a highly developed telecommunications market, Europe is both a major producer and consumer of information and communication technologies and services. In 2011, the telecommunications market grew by 3.7 percent. The broadband market grew 8.1 percent, and is expected to increase from $55.2 billion in 2011 to $69.7 billion in 2015. In the past, new broadband subscribers were attracted to low costs, but today's new subscribers are opting for faster speeds rather than lower costs when choosing a provider, creating new market opportunities.

In order for trade in telecommunications equipment to continue to flow to the mutual benefit of Europe and the United States, it important that both adhere to mutual commitments under the Information Technology Agreement (ITA). The ITA is an important international agreement with 71 signatories which eliminates tariffs on innovative technologies that positively transform the way the world communicates, conducts business, and educates its people.  Specifically, the 1996 ITA agreement eliminates import duties on computers, telecommunication equipment, semiconductors, semiconductor manufacturing equipment, software, and scientific equipment.  World exports of ITA products over the past decade have more than doubled in dollar terms, reaching US$1.52 trillion in 2006, with annual average growth of roughly 8.5 percent.  From 1996 to 2008, total ITAproduct trade has increased more than 10 percent annually, from $1.2 trillion to $4.0 trillion.
 
TIA and its members welcome the WTO dispute resolution panel's July 2010 ruling that upheld the U.S. claim that the European Union's imposition of duties on a variety of products is a violation of its tariff committments and that the products should remain free from tariffs, as they are covered by the Information Technology Agreement.  While the WTO's decision is favorable to the U.S., TIA is concerned about reports of the EU still applying tariffs, although less, on multifunction machines.
 
Furthermore, while the EU has taken some steps to come into compliance and provide duty-free import of products such as set-top boxes and flat-panel displays, it is still unclear whether these products will actually enter duty-free because the EU has not provided explicit guidelines to customs officials for this allowance.  At this time, set-top boxes and flat-panel displays still incur tariffs.
 
TIA encourages the EU to quickly comply with the WTO's Dispute Settlement Board's (DSB) recommendations and rulings from its September 2010 meeting to ensure that all ICT products are treated fairly under the ITA.  TIA believes that European businesses and consumers are entitled to continue to reap the benefits of competetiveness and innovation provided for by the ITA, committments to which the EU has already subscribed.

Useful links

 

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