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Information and Communications TechnologySector  OPPORTUNITIES FOR U.S. INFORMATION AND COMMUNICATION TECHNOLOGY GOODS
 Trans-Pacific Partnership

U.S. ICT Exporters Currently Face Barriers in New TPP Markets**


$10.0 Billion
in U.S. ICT Exports to New TPP Markets in 2015


ICT Exports Face Tariffs in New TPP Markets Up to 35%


Border Delays, Red Tape, and Other Customs Inefficiencies Increase Costs and Impede the Flow of U.S. Exports Throughout the Region


Importance of the U.S. ICT Sector

686,000 U.S. ICT Workers in 2015


$175.3 Billion
in U.S. Production in 2014


$92.6 Billion in U.S. ICT Exports to the World in 2015


U.S. ICT Exports to the World Grew by 16% between 2009-2015


38%
of Total U.S. ICT Exports to the World in 2015 Went to the TPP Region

Information and Communication Technology (ICT) Goods include products covered by the World Trade Organizationís Information Technology Agreement (ITA), including products covered by both the original ITA and the subsequent expansion negotiations, as well as other products such as optical fibers, audio-video equipment, television reception apparatus, coaxial cable, and batteries

Key Market Access Benefits

Japan will eliminate import taxes on 100% of U.S. ICT exports immediately

Malaysia will eliminate import taxes on 99.5% of U.S. ICT exports immediately

New Zealand will eliminate import taxes on 98.8% of U.S. ICT exports immediately

Vietnam will eliminate import taxes on 96.9% of U.S. ICT exports immediately and 100% within 4 years

New TPP Partners are Significant Markets for
U.S. ICT Exports

Malaysia $4.6 Billion
Japan $4.4 Billion
Vietnam $527 Million
New Zealand $115 Million
Brunei $24 Million

U.S. ICT Exports Currently Face
High Barriers in New TPP Markets...

tariff

...Which Will Be Eliminated Under TPP.

99.6% of U.S. ICT Exports to New
TPP Markets will Enjoy Duty-Free Access Immediately
(Share of Exports by Tariff Elimination Basket)
Percentages rounded up to nearest whole number.


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Move the slider to see the percentage of goods that will become
duty-free over a certain amount of time

Opportunities for Selected ICT Products

trade in digital productsTrade in Digital Products

Not only will TPP eliminate tariffs on ICT goods, but it will also ensure that the content transmitted over those technologies is also duty-free. Under TPP, any digital content (music, software, movies, etc.) shall be duty-free.

For more information on digital products, see our digital services brief.

ita membershipITA Membership

Under TPP, Brunei, Chile, and Mexico agreed to seek membership to the World Trade Organization’s Information Technology Agreement (ITA), thereby eliminating all tariffs on information technology products on a most-favored nation basis, not just those traded within the TPP. Additionally, all future TPP parties will be required to join the ITA.

• For more information on the HS lines included in this sector report, please see this document.

* TPP Countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru,
Singapore, the United States, and Vietnam

** New TPP Countries: Countries with which the United States currently does not have preferential
market access - Brunei, Japan, Malaysia, New Zealand, and Vietnam

For more information on the methods and calculations used, please see this guide.

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