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Information Technology Agreement

Information Technology Agreement. Implications for Kenya, Uganda & Rwanda Presentation Briefing to the WITSA Public Policy Meeting by Rogers Baguma Chairman PiCTA, Uganda. About this Project. Assist 3 COMESA countries in analyzing impact of accession to the ITA

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Information Technology Agreement

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  1. Information Technology Agreement Implications for Kenya, Uganda & Rwanda Presentation Briefing to the WITSA Public Policy Meeting by Rogers Baguma Chairman PiCTA, Uganda

  2. About this Project • Assist 3 COMESA countries in analyzing impact of accession to the ITA • Project is an initiative of the ECA Hub • Project commenced September 1,2004 • Project completion with draft final report by end Oct 2004 • 3 countries selected are Kenya, Uganda and Rwanda

  3. ECA Competitiveness Hub • East & Central Africa (ECA) hub is supported by USAID • Located in Nairobi, Kenya • ECA Hub has 4 main programs • Trade Policy / Capacity Building • AGOA • Customs • Transport • COMESA is a partner of the ECA Hub

  4. About the ITA • Concluded at the WTO’s Ministerial Conference in Dec 1996, in Singapore • Required participation by countries accounting for 90% of World IT trade to go into effect • 1st staged reduction of tariffs occurred 7/1/1997

  5. ITA’s Key Considerations • Role of trade in IT products in the development of information industries and in the dynamic expansion of the world economy • Recognizing goals of raising standards of living and expanding the production of and trade in goods • Desiring to achieve maximum freedom of world trade in IT products; • Desiring to encourage the combined technological development of the IT industry on a world-wide basis • Mindful of the positive contribution IT makes to global economic growth and welfare

  6. ITA Provisions • All products listed in the agreement must be reduced to zero tariff level • Duty elimination is on the MFN basis • Agreement provides for review of non-tariff barriers, but no binding commitments • Possible for extended implementation period for sensitive items

  7. ITA Participants • 63 signatories • 3 African Countries : Egypt, Mauritius and Morocco • 15 Lower Income Developing Countries

  8. Lower Income Parties to ITA • Albania, Bulgaria, China • Egypt, El Salvador, Georgia • India, Indonesia, Jordan • Kyrgyz Republic, Moldova, Morocco • Philippines, Romania, Thailand

  9. Benefits of ICT • One of the most rapidly growing economic sector in many countries • A Major driver in most sectors especially: • Medicine • Education • Tourism • Government • e-Commerce • Banking and Finance

  10. African Signatories & Non-Signatories

  11. Selected Lower Income Signatories & Non-Signatories

  12. Study Methodology • Using local in-country consultants • Kenya : Ms Margaret Chemengich • Uganda: Rogers Baguma • Rwanda:Who is the consultant? • Review of background literature on ICT Impact, Policy, investment, imports and exports (trade statistics), taxation & Revenue, etc • Interview of at least 20 key persons in the ICT industry, public and private sector officials • Data analysis • Impact analysis (On Producers, Users, Govt Revenue & Growth) • Comparative review with best practices • Draft report( may be combined for the 3 countries) due by Mid Oct 2004 • Presentation of final draft to key stakeholders for validation

  13. Possible Implications • Impact on government revenue from eliminating duties on IT products • need to consider both static and dynamic effects • Impact on Competitiveness of Producers of IT Products • Impact on general society

  14. UGANDA Zero Tariff (2nd year)on select IT Products only Computers Software Teledensity: (mobile + fixed tele lines)=3.308 GDP (contribution by ICT)1.4% No. of ISPs……18 No. of Mobile Subs….abt.1mio ICT Policy …….Yes Rural Comm Devpt….Yes Local ICT Manufacture…minimal KENYA Facts under review Country Situation on ICT • RWANDA • Facts under review

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