Saturday, November 15, 2014

Agreement on IT between the US and China promises a bright future of Apple and the world of technology in general

Companies such as Microsoft, Hewlett Packard and Apple, probably, will be among the many to benefit from a free trade deal between the US and China. Under its terms, the tariffs for the sale of technology products should 

01-World-technology-market

be significantly reduced. Under technological products here refers game consoles, high-tech devices and prepaid cards from mobile operators.

Agreement between China and the US, concluded on Tuesday, eliminates all the obstacles are for distribution and operation of the Agreement on Information Technology, 78 members of which are responsible for 97% of exports in the field of information technology. New conditions - a long-awaited solution for different groups in the technology industry, which have long invoked to update the terms of an international treaty of 1997. Indeed, in the old document written request to reduce the cost of CDs and diskettes on the world market, which is not too important in the era of iTunes gift certificates or prepaid credits for MMORPG World of Warcraft.

If, as expected, the other members of the agreement will support the new conditions on the basis of their technological companies in the United States, Japan, Taiwan and other countries will get great opportunities for development. The deal could bring the overall profit of $ 1 trillion. This assured analysts from the US.

According to the agreement, tariffs on sale, for example, game consoles will be reduced. But now they reach the margin of 30%, depending on the country. Through the deal, manufacturers can supply their products - both components and finished goods - in other countries without having to pay customs duties on the goods referred to in the document.

On the introduction of some new tariffs may take time, namely, up to seven years. Schedule yet to be confirmed as part of the Information Technology Agreement. Negotiations for him to be held in Geneva with the participation of representatives of 54 member countries.

The deal on Tuesday officially announced by US President Barack Obama. According to him, a successful agreement will soon come to a common conclusion on future negotiations in Geneva.

Beijing's position has long been an obstacle to the spread of the conditions of the Agreement on Information Technology. After all, China is a serious risk of losing profits after the abolition of import-related duties on components imported into the Chinese factories.
Chinese Ambassador to the World Trade Organization Yu Jianhua estimated that Celestial lose $ 27 billion in customs tariffs, if the deal is approved yet. Although the export tax while reducing only $ 3 billion. "There is a serious deficit in the balance between the cost and benefits of this transaction," - said the Ambassador in March. At least, so it was quoted in the publication «Inside US Trade», approved by officials from the WTO.

US officials, however, disputed the calculations. Foundation of Information Technology and Innovation (Research Center in Washington, DC, is funded technology industry) estimated that the loss of China from reducing import tariffs amount to only $ 6.4 billion. Although this does not include those tariffs that charge Beijing supplies fall under the terms of the contract products .

Also, China is in no hurry to open its semiconductor industry, because here is trying to form a new sector.

Given that the complexity of the negotiations between China and the US have always prevented productive cooperation, the deal provides a good chance for discussion.
The official representative of the Ministry of Economy, Trade and Industry of Japan

Taiwanese representative of trade also responded positively to the agreement and said that local manufacturers of semiconductors and other technology companies will definitely benefit from it.

Japanese Association of Electronic and Information Technology Industries JEITA, whose members include giants such as Sony, Panasonic, Sharp and Toshiba, also welcomed the deal:

We've all been waiting for this since as a discussion between the US and China suspended last year. If the discussion resumed in Geneva, and the reduction of customs tariffs will be accepted, it will positively affect the work of the JEITA and technology and electronics industries in Japan as a whole.

In turn, representatives of Panasonic, Sharp and Toshiba declined to comment on the news.

Company Sony could benefit from reducing the cost of prepaid cards to purchase credits for online games. These cards are sold at a premium of up to 10% (depending on country) due to the Customs Tariff, and they can also be used in the online store iTunes. Asked to comment on the situation Sony also refused.

Apple and Microsoft is particularly focused on the need to eliminate tariffs on such prepaid cards. This should help to control the illegal copying of software. Although both US companies do not provide clear comments on this topic.

This is particularly important for countries where credit cards are not common. People can go to a local shop and buy a prepaid card with which they then acquire software.
John Nyuffer, senior vice president of international policy at the Council of Information Technology, pcs. Washington

In general, according to Nyuffera, the cost of information technology may be reduced due to the reduction of tariffs on imports.

Those who have followed the process of negotiations, argue that processor manufacturers certainly be a benefit, if the conditions of the contract will include products such as multi-type semiconductors and chips Mixed Control Oscillator, or MCO, used in smartphones and other gadgets. These processors come with a premium of up to 25%, depending on the country.

American Association for the semiconductor industry has determined that inclusion in the list of chips MCO agreement on information technology will save the industry from $ 150 million to $ 300 million per year for the payment of import tariffs worldwide. President and CEO of the Association Brian Tui called the agreement a great victory for the American economy and for consumers around the world. In China, such processors already sells Qualcomm. This company from San Diego,. California, reported that 50% of their profits in the fiscal year ended in September, has received from China. Official representative of Qualcomm, however, has not yet responded to a request to comment on the statement.

Another firm, for which the new conditions of international trade will be profitable, it is Intel. Intel processors for personal computers and servers are now sold without a fee in China. But the company hopes to become a major supplier to China MCO-chips. Official Intel spokesman welcomed the deal between the US and China, said the expansion of the list of the Information Technology Agreement to be profitable for the worldwide market of information technologies, as well as for consumers.

Another situation involves the reduction of tariffs on imports of solid-state drives. Among them stands out suppliers and Micron Technology SanDisc, collaborating with Toshiba to manufacture chips. Representatives SanDisk does not comment the news, but the CEO of Micron, Mark Darcy, believes that the new treaty will definitely be useful to anyone working in the world market.

Manufacturers of computers and network equipment like Cisco, Dell and HP, are also expected to benefit from the new tariff conditions. After all, it will reduce the cost of the components used in their products because the items come from abroad through complex supply chains.

Besides the HP deal is good for the fact that the terms of the Agreement mean reduction in the cost of import of cartridges for printers, the most popular product Hewlett Packard. Prior to that allowance import amounted to 25%.

Representatives from Dell and HP also does not comment on the situation. Vice president of Cisco's Government Affairs, Jeff Campbell, called the deal a major breakthrough in the arena of world trade.

Medical equipment, such as magnetic resonance imaging, acoustic systems and GPS devices have also been added to the new list of the Information Technology Agreement, and must now be imported free of duty. [WSJ]

Interestingly, this theme has passed practically unnoticed in RuNet, and yet on the importance it can be compared to the invention of the next megaprotsessora or introduction of a new generation of high-speed cellular networks. Why? Because this money, because a huge savings for both producers and consumers. Freed up capital will be directed not to "money-box" or something for personal use, and for the further development of the market. Just imagine - IT-industry will receive $ 1 trillion annually, which can be seen as an investment in the development of IT-technologies. Ultra-miniature batteries and projected controls, for example, smart watches, active development of OLED-technology, which clearly occupy liberated "plasma" niche, the new processors, leap in the development of quantum computers, intelligent home appliances ... the list can continue for long. The future is happening before our eyes with you, and it's going almost unnoticed, thanks to behold such international economic treaties.

http://www.iphones.ru/iNotes/388445

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