ITA-3: A Step Towards a Sustainable Future for Global ICT and Economy

The Semiconductor Industry Association (SIA) is spearheading a new initiative, ITA-3, that aims to create a sustainable future for the global Information and Communication Technology (ICT) industry and economy. This initiative is an extension of the World Trade Organization's (WTO) Information Technology Agreement (ITA) which was launched in 1997 to eliminate tariffs on a wide range of tech products. The ITA-2 in 2015 saw 53 nations come together to further eliminate tariffs, bolstering the global trade by an additional $1.3 trillion. Now, SIA is leading a delegation to Geneva for the fourth time in 18 months to push the boundaries even further with ITA-3. The main focus of this delegation is a newly updated report from the Information Technology and Innovation Foundation (ITIF). This report highlights the numerous benefits of a potential ITA-3 to both developed and developing nations, workers, and the global supply chain. It also emphasizes the role of ITA-3 in enhancing the global environment. The report examines over 400 unique ICT products that could be candidates for ITA-3. These products range from digital displays, energy-efficient technologies, digital manufacturing technologies, commercial-use drones, medical technologies and devices, semiconductor manufacturing parts and supplies, to storage batteries. The ITIF report suggests that if all 82 ITA-1 signatory countries were to join the proposed ITA-3, the global GDP could grow by $766 billion over the next 10 years. This could result in a $208 billion surge for the U.S. GDP, an increase in U.S. exports of ICT products by nearly $3 billion, and the creation of nearly 60,000 new jobs in America. Countries that have been hesitant to join the ITA have found themselves excluded from the global value chain for the production of ICT goods, missing out on significant growth opportunities. SIA urges these countries to consider joining ITA-1, ITA-2, and participate in launching an ITA-3. Semiconductor-enabled technologies, which have been one of the biggest beneficiaries of the ITA, can reduce greenhouse gas emissions by up to 15%, almost one-third of the reduction needed by 2030. Semiconductors form the backbone of modern digitalized technologies and their availability, affordability, and environmental benefits are indispensable for a greener global economy. The ITA has also revolutionized the workspace, enhancing remote work, broadening access to online education, streamlining online job searches, and expanding opportunities for remote services. This has empowered workers, increased employment, improved work-life balance, and lifted overall job satisfaction. As part of their work in Geneva, SIA is co-hosting a panel with the Singapore Semiconductor Industry Association (SSIA) on the critical role of global semiconductor trade in driving energy efficiency and sustainability at this year’s WTO Public Forum, the WTO’s largest public outreach activity. The session will explore the vital relationship between global tech trade and environmental sustainability, and underscore the importance of rules-based trade and advancing new market access initiatives at the WTO.