. /.RESTRICTEDWORLD TRADE
ORGANIZATIONG/IT/SPEC/Q3/1
17 October 2001
(01-5099)
Committee of Participants on the Expansion
of Trade in Information Technology ProductsOriginal:  English
THE NON-TARIFF MEASURES WORK PROGRAMME
COMMENTS ON THE SUBMISSIONS
Communication from Australia
The following communication, dated 8 October 2001, has been received from the Permanent
Mission of Australia.
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Phase II – Examination of the economic and development impact of non-tariff measures
on trade in ITA products and the benefits which would accrue to participants
from addressing their undue trade-distorting effects
Australia has examined the lists of non-tariff measures affecting trade in information
technology products notified in documents G/IT/ SPEC/Q2/1-7 and has considered the economic and
developmental impacts of these measures.
As outlined in our paper (G/IT/SPEC/Q2/3), the key measures affecting our trade in
information technology products are aspects of standards and conformity assessment procedures.
Regulatory procedures and arrangements for the protection of intellectual property also have
significant adverse impacts in some circumstances.
Australia notes the concerns of other Participants regarding a range of other non-tariff
measures.  Australia also notes that not all the non-tariff measures that have been notified would be
applied by all importing countries, and that Participants will face varying trade barriers depending on
the nature of their exports and the non-tariff measures applying in target markets.
With regard to the economic impact of these non-tariff measures, it is not possible to quantify
either the level of protection accorded to industry in importing countries or lost market access for
exporters resulting from the non-tariff measures which have been notified.  However, based on
anecdotal advice from industry, it seems clear that the measures identified either significantly limit or
impede market access.  The trade impacts vary across different markets and to varying degrees.
Australia has developed good and diversified markets for ITA products, with our top ten
export destinations covering North America, Oceania, Asia and Europe.  While Australia's share of
global ITA products exports is small, Australian products make an important contribution to export
earnings, contributing around 3% of total Australian exports in 2000-2001.
Our experience as a producer and exporter of a narrow range of high quality information
technology equipment is that our capacity to maintain and expand exports of ITA products is limitedG/IT/SPEC/Q3/1
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by practices such as importers specifying technical details and standards of equipment, rather than
calling for equipment to meet performance criteria.  Th is is particularly important in the information
technology industry where new designs are being ra pidly developed and where the development and
application of internationally agreed standards is not necessarily feasible or appropriate.
As also noted in our submission to the NTM inventory, regulatory requirements intended
primarily for safety purposes also impact adversely on trade opportunities, particularly where these
may be based on specifications rather than performance.
Time-consuming and costly conformity assessment procedures including testing requirements
have proved to be significant barriers to trade expansion.  Conformity assessment procedures have, in
some instances, also given rise to concerns about the protection of the intellectual property rights ofproducers of ITA products in line with WTO rules.
The overall economic impact of these measures on Australia is to constrain the development
of an efficient IT industry which can contribute to particular sectors of the global IT market on the
basis of an efficient scale of production.
This, in turn impacts on other developmental factors such as employment levels and the
capacity to foster technologically advanced industry.  More particularly, access to ITA products is
fundamental to economic progress and development.  Hence all countries, including developing
countries, stand to benefit from greater access to ITA products resulting from trade liberalisation.Although the immediate outlook for overall trade grow th is uncertain, the IT sector has been one of
the fastest growing categories of world trade and continued growth in this sector will be important in
addressing economic recovery.
NTMs cause delays in trade and add to its costs.  There is a direct effect on manufacturers and
exporters, impeding trade, and the delays and costs also affect consumers, government, business,
non-government organizations – hindering their access to the latest technology and thus acting as a
brake on economic development, employment and social welfare.
NTMs also aggravate the digital divide at the international and intranational levels, making it
harder for countries to benefit from the efficiencies flowing from the application of information and
communications technology, including in electronic commerce and other aspects of the informationeconomy.
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