Transcript 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
• 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
ECA Competitiveness Hub
• East & Central Africa (ECA) hub is supported by
USAID
• Located in Nairobi, Kenya
• ECA Hub has 4 main programs
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Trade Policy / Capacity Building
AGOA
Customs
Transport
• COMESA is a partner of the ECA Hub
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
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
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
ITA Participants
• 63 signatories
• 3 African Countries : Egypt, Mauritius and
Morocco
• 15 Lower Income Developing Countries
Lower Income Parties to ITA
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Albania, Bulgaria, China
Egypt, El Salvador, Georgia
India, Indonesia, Jordan
Kyrgyz Republic, Moldova, Morocco
Philippines, Romania, Thailand
Benefits of ICT
• One of the most rapidly growing economic
sector in many countries
• A Major driver in most sectors especially:
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Medicine
Education
Tourism
Government
e-Commerce
Banking and Finance
African Signatories & Non-Signatories
Population
(millions)
GNI per Cost of
Capita
Local
Phone
call
Cell
Phones
per
1000
PCs per
1000
Internet
Users
per
1000
Kenya
31.3
360
0.07
42
6.4
13
Rwanda
8.2
230
0.09
14
N/a
3
Uganda
24.6
240
0.21
16
3.3
4
Egypt
66
1470
0.02
67
16.6
28
Mauritius
1
3860
0.04
289
116.5
99
Morocco
30
1170
0.15
209
23.6
24
Country
Selected Lower Income Signatories & NonSignatories
Population
(millions)
GNI per Cost of
Capita
Local
Phone
call
Cell
Phones
per
1000
PCs per
1000
Internet
Users
per
1000
Kenya
31.3
360
0.07
42
6.4
13
Rwanda
8.2
230
0.09
14
N/a
3
Uganda
24.6
240
0.21
16
3.3
4
India
1049
470
0.02
12
7.2
16
Kyrgyz
Rep.
Moldova
5
290
0.09
10
12.7
30
4
460
0.02
77
28.4
34
Country
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
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
Country Situation on ICT
• 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
• RWANDA
• Facts under review