WTO ITA Members Launch Talks to Expand Pact, Tackle AI, E-Commerce and NTMs

Participants of the World Trade Organization’s (WTO) Information Technology Agreement (ITA) and its ITA Expansion Agreement marked a significant step forward on 7 May 2025 by endorsing a comprehensive work programme aimed at modernizing the agreements and expanding their relevance in a rapidly evolving technological landscape. The initiative seeks to broaden the membership of these crucial trade agreements and explore their intersection with emerging domains such as artificial intelligence (AI), digital trade, and e-commerce.

Three Thematic Sessions Set Through 2026

Members agreed to organize three thematic sessions starting in autumn 2025 and running through the end of 2026. These sessions will form the core of discussions on the future evolution and strategic relevance of the ITA:

1. Session 1: Opportunities of ITA Participation This session will focus on the experiences of current participants and relevant stakeholders. By highlighting the economic and developmental benefits of participation, it aims to incentivize more WTO members—particularly from the developing world—to join the ITA and ITA Expansion Agreement.

2. Session 2: ITA and Emerging Technologies like AI Recognizing the transformational potential of artificial intelligence and other advanced technologies, this session will explore how the ITA can be a catalyst for innovation and tech diffusion. It will examine how reducing barriers on AI-enabling technologies could promote broader access and integration into global markets.

3. Session 3: Supporting E-Commerce and Bridging the Digital Divide The final session will analyze how the ITA can contribute to e-commerce development and address the persistent digital divide. By identifying ITA-covered products vital to online trade and digital infrastructure, members aim to ensure the agreement supports inclusive digital growth.

The Chair of the ITA Committee, Mr. Ta-Lin (Peter) Shih of Chinese Taipei, confirmed that the WTO Secretariat, in collaboration with interested delegations, will continue to develop these sessions in detail and keep members updated.

Tackling Non-Tariff Measures (NTMs)

A renewed focus was placed on addressing non-tariff measures (NTMs), with members discussing how such regulatory barriers affect trade in ITA-covered products. The Chair shared insights from recent consultations, emphasizing that many NTMs impact highly traded products such as mobile phones, computers, and remanufactured electronics.

Concrete suggestions included:

• Prioritizing NTMs affecting the most significant ITA exports.

• Addressing technical and procedural barriers tied to remanufacturing.

• Holding joint sessions with the WTO Committee on Technical Barriers to Trade (TBT).

• Conducting surveys to map out member concerns and priority NTMs.

• Revitalizing the dormant NTMs working group to support coordinated action.

The Committee Chair encouraged deeper engagement on these fronts and proposed that the next incoming Chair consider launching a formal NTM work programme. Coordination with the Goods Council Chair on appointments for relevant subsidiary bodies is currently underway.

Updating Product Classifications: Harmonized System Challenges

A central technical issue tackled at the meeting was the classification of 22 IT products under the 2022 version of the Harmonized System (HS), which is used globally to assign tariff codes and ensure uniform customs practices. The WTO Secretariat has compiled a guidance document on how to transition these products—such as flat panel displays and networking equipment—into the updated HS framework.

While a consensus on the classification codes remains pending, members welcomed the Secretariat’s proactive initiative. The European Union, Japan, Hong Kong (China), and the United Kingdom expressed their appreciation, calling the document a strong foundation for resolving divergences. The Secretariat also confirmed it is engaging with the World Customs Organization to ensure its classification proposals align with international best practices.

Concerns About ITA Implementation: Indonesia and Egypt Highlighted

In a recurring issue, members raised concerns over the application of import duties by Indonesia and Egypt on products that are widely regarded as falling within ITA commitments—particularly mobile phones and related electronics. These concerns reflect persistent disagreements about the scope of product coverage under the ITA and have been raised at previous committee sessions.

As discussions continue, participants aim to ensure greater clarity and uniformity in implementation among all signatories, reinforcing the integrity and credibility of the ITA framework.

The ITA and its Expansion Agreement remain cornerstone pacts for the liberalization of global trade in information technology. With efforts now underway to embrace AI, e-commerce, and broader membership, these agreements are being reoriented to meet the demands of the digital economy of the future.