India's voluntary decision to join the WTO Information Technology Agreement (ITA) in 1997 was deemed a big mistake by some.
India having lost the WTO dispute on customs duties on mobile phones and certain other IT products is now old news. But an important facet of the dispute appears to have escaped attention of the analysts — why did India voluntarily join the WTO Information Technology Agreement (ITA) in 1997 and commit to eliminating customs duties on about 200 IT products? An answer to this question has enduring lessons for trade negotiators from India and other developing countries.
At the outset, recounting a bit of history of the ITA appears relevant. During the first ministerial conference of the WTO held in Singapore, a few WTO Members concluded the ITA on December 13, 1996.
Under the agreement, the participants decided not to impose customs duties on about 200 products related to the IT sector.
The main proponents of the ITA included the European Union (EU), Hon...