WTO: Zero Tariff for medical equipment products in three to five years

Source: medical device innovation network on December 16, 2015, the WTO reached a comprehensive agreement on expanding the product range of the information technology agreement (ITA) According to the agreement, all products are planned to implement tax reduction from July 1, 2016, and most products will be subject to tariff elimination in three to five years, and will be applicable to all WTO members on the basis of MFN treatment That is to say, the tariff of the medical device products included in the tariff will be cancelled in three to five years, which will greatly benefit the development of China's medical device industry At present, the weak growth of Global trade and the prevalence of local trade protectionism are the reasons why the confidence of industry and commerce is declining and the investment is tightening The existence of tariff barriers restricts the development of many industries, especially the high-end manufacturing industry and information industry 1 Information technology agreement product expansion according to the Information Office of the Ministry of Commerce: on December 16, the WTO reached a comprehensive agreement on expanding the product scope of the information technology agreement (ITA) On the basis of the product scope of the information technology agreement in 1996, 201 new products were added, including information and communication technology products, semiconductors and their production equipment, audition products, medical devices, instruments and meters and other products closely related to the development of modern science and technology All products are planned to implement tax reduction from July 1, 2016 Most of the products will be subject to tariff elimination in three to five years, and will be applicable to all WTO members on the basis of MFN treatment The implementation of zero tariff will enable global consumers to enjoy the benefits of the latest technology at a lower price, and will also drive the world economy out of a period of weakness Among them, the tariff of all Japanese products will be cancelled immediately upon the implementation of the agreement, the tariff of all American products will be cancelled within three years, and the tariff of most Korean products will be cancelled within three years According to the WTO statement, 54 WTO members took part in the expansion of Global trade in products, accounting for about 90% of the global trade in related products Under the current background of sluggish growth of Global trade and the spread of trade protectionism, this will greatly boost the confidence of the business community and further improve the level of Global trade liberalization (see related reports of Xinhua News Agency) 2 The impact of the expansion on China China formally joined the information technology agreement in 2003 At present, China has become the world's largest producer and exporter of information technology products, the second largest importer, and an important participant in the global value chain of information technology products China accounts for about a quarter of the global trade volume of the expanded products, ranking first in the world After reaching an agreement on the expansion negotiation, it will help expand the export of relevant products in China, reduce the import cost of relevant components and equipment, and bring benefits to enterprise users and consumers At the same time, the conclusion of the agreement is conducive to consolidating China's position in the global value chain, promoting the extension of China's information technology products to the high-end of the global value chain, helping informatization drive industrialization, and promoting "made in China 2025" 3 As the representative of information technology products, especially the high-end medical devices at the top of the value chain, the design and manufacturing of the beneficial medical devices in the medical equipment industry represent the advanced manufacturing industry of a country Under the influence of tariff, import and export barriers, part of China's medical equipment industry is in overcapacity and has no way to export In addition, the import components of high-end manufacturing industry are also tightened, and the price of imported medical equipment products is high, which makes the development of domestic medical equipment market deformed According to the statement of the agreement, the tariff of medical devices will be cancelled among member countries in the next three to five years, which will undoubtedly play a positive role in revitalizing the medical device Market: first, the export of low-end excess capacity will be reduced The problem of domestic medical equipment export has been solved The implementation of zero tariff will maximize the release of domestic medical equipment production capacity, and make the development of domestic medical equipment enterprises enter a benign stage The high cost performance of domestic medical equipment will probably reshape the pattern of world medical equipment products Second, the import of core components required for the import of high-end medical equipment has been solved Getting rid of the previous shackles on core and key components such as imported components will greatly enhance the development of high-end medical equipment localization; finally, the transformation and upgrading of high-end design and manufacturing of domestic medical equipment will be realized, and the rise of domestic medical equipment will be truly realized with the national attention and layout of high-end medical equipment (original title: WTO: Zero Tariff for medical equipment products in three to five years)