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• In December 1996, 29 member countries of the World Trade Organization (WTO) created the Information Technology Agreement (ITA) with the goal of lowering barriers to trade in IT goods to promote global technology diffusion and economic development.
• The ITA now has 71 members around the world, representing 97 percent of global trade in IT products.
• Among developing nations, ITA members score 57 percent higher than non-ITA members on the International Telecommunication Union’s Digital Opportunity Index, which measures the quality, accessibility, and affordability of a country’s IT infrastructure.
• Since the birth of the ITA, U.S. exports of ITA goods to the rest of the world have increased 42 percent, from $133 billion in 1996 to $189 billion in 2006.
• Some ITA signatories, most notably the European Union, are now assessing duties on certain IT products that have previously received duty free treatment; this decision contradicts the ITA, hinders technology diffusion in the importing countries, and raises trade barriers that harm U.S. exporters.

We are delighted to bring you this 24th regular installment of the AeA Competitiveness Series.  The AeA research team produces these reports on the most timely and relevant issues to the high-tech industry and to U.S. competitiveness in a global economy.  We combine rigorous data with careful analysis to provide industry leaders and policymakers the information they need to assess the issue.