201 products are now tariff-free.
Singapore and 52 other World Trade Organization (WTO) members have inked the Expansion of the Information Technology Agreement (ITA), according to a news release by the Ministry of Trade and Industry (MTI).
As the first major tariff-elimination deal from the WTO in almost twenty years, the ITA will dash tariffs on 201 information and communications technology (ICT) products such as GPS systems, multi-component integrated circuits, medical devices and touchscreen devices. ICT products cover a jaw-dropping annual global trade export value of US$1.3t.
As the fifth largest ICT products exporter among the ITA participants, Singapore businesses will significantly benefit from the ITA expansion as they will be able to enter key global markets such as the US, EU, China, and Japan tariff-free.
Further, the tariff elimination for ICT products will bolster investment and job creation, and have a positive knock-on effect on components and parts trade.
Singapore consumers will also be able to feel the effects of the deal, as the overall cost of ICT products will likely tip back.
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