Information Technology Agreement Products

• Trade and Tariffs
• Tariff Elimination

Trade and Tariffs

This sector is defined by products included within the World Trade Organization’s Information Technology Agreement (ITA). ITA products accounted for 14.5 percent of total U.S industrial exports to Peru in 2005, totaling over $251 million. The top U.S. exports in this sector included computers, computer parts, and radio and TV broadcasting apparatus. Peruvian tariffs range between zero and 12 percent, with an average of 5.8 percent in 2005.

Peruvian exports to the United States totaled almost $2.5 million in 2005, or less than 1 percent of total Peruvian industrial exports to the United States. Top Peruvian exports to the United States included data input and output units, antennas, and computer parts. The United States is a signatory to the ITA, and thus imposes zero duties on these products.

Tariff Elimination

Overall, tariffs will be phased out according to four tariff elimination categories: immediate elimination, equal cuts over five years, equal cuts over 7 years, and equal cuts over 10 years.

For ITA products, almost all U.S. industrial exports will receive duty-free treatment immediately upon implementation of the agreement. Duties on a few electrical conductors will be eliminated over five years. Additionally, Peru has agreed to join the ITA multilaterally by January 1, 2008.

Non-Tariff Barriers

Peru will eliminate its prohibition on the importation of remanufactured ITA goods, as defined in Chapter Four - Rules of Origin, on entry into force of the Agreement. Peru will eliminate tariffs on most remanufactured ITA goods immediately and will phase down tariffs on a small number of remanufactured goods over 10 years.

International Trade Administration
Manufacturing and Services
Office of Trade Policy Analysis