Thailand is expected to benefit greatly when the expansion of tariff waivers in the 1996 Information Technology Agreement (ITA) comes into force on Friday.
Sirinart Chaimun, director-general of the Trade Negotiations Department, said the pact will allow Thailand to enjoy tax waivers on IT products imported from countries with which Thailand has yet to sign free trade agreements, such as the US, EU members, Canada and Taiwan.
Some 46 ITA members agreed to expand the products covered by the agreement by eliminating tariffs on an additional 201 products. Annual trade in these products is valued at more than US$1.3 trillion per year and accounts for about 7% of global trade.
The new accord covers new-generation semiconductors, semiconductor manufacturing equipment, optical lenses, GPS navigation equipment and medical equipment such as magnetic resonance imaging products and ultrasonic scanning apparatus.
The ITA covers many high-tech products including computers, telecommunications equipment, semiconductors, semiconductor manufacturing and testing equipment, software and scientific instruments as well as most of the parts and accessories of these products.
The breakthrough follows months of intensive negotiations among ITA participants.
The ITA was originally agreed in December 1996 at the first World Trade Organization (WTO) Ministerial Conference, held in Singapore.
All 163 WTO members will be entitled to benefit from the agreement, which gives duty-free access to markets for IT products.
Ms Sirinart said Thailand's IT trade value in the world market is about $50 billion or nearly 2 trillion baht a year, representing about 1.7% of global IT trade. Exports make up half. "The pact will increase investors' confidence in Thailand's plans to promote IT-related manufacturing and services as well as the digital economy," she said.