CEBU, Philippines - Global information technology agreement (ITA) has contributed to the empowerment of emerging information and communications technology software and service industries in Asia including the Philippines along with India, Indonesia and Malaysia,
During the 17th World Electronics Forum held at Shangri-La's Mactan Resort & Spa, Senior Director for International Trade for the Consumer Electronics Association Sage Chandler explained the benefits of tariff-eliminating expansion of ITA.
Records show that from 1996 to 2008, total global ICT trade has increased to 10% per year, from $1.2 to $4 trillion and developing country ITA exports expanded at 33.6 % per year. ITA expansion is also expected to affect an additional $400 billion in ICT trade.
She noted that the economic benefit cycle of ITA comprises of trade, innovation and investment and expanding ITA will increase such advantages. Creation of more ICT jobs and competition leads to additional innovation and better ICT products, resulting to more economic growth and greater trade. No ICT tariffs and lower prices would also mean to greater ICT demand and more profits to invest in ICT, leading to more ICT trade and investments and more ICT exports, jobs and competitions.
From 2007 to 2010, Philippines has exported $15.6 billion in ICT and its exports of ICT products increased by 14 percent which accounted 51 percent of the country’s industrial goods exports on those years.
Chandler also mentioned that expanded ITA could further help the country’s top exports of ICT goods such as instruments for automatically controlling the flow of gas or electricity, electrical apparatuses for switching, protecting, or connecting to electrical circuits, selected antenna components and radio remote control equipment.
Though ICT industries are highly competitive, she added that tariffs hamper such competition, reducing the speed of innovation and increasing the costs to consumers. By lowering ICT prices on the other hand, ITA has enabled the broad utilization of ICT and empowered not just developing countries but also the global economy. (FREEMAN)