Japan And The U.s. Plan For Zero Tariffs On Home Appliances

In 2005, including digital cameras, including anotherespecially in the flat-panel television. Since late start in
installment of "Information Technology Agreement"this area, SVA and BOE have called for countries to
(ITA) products, import tariffs will decline to zero. Atprovide the appropriate policy support. It is reported
this point, China will be completed for all productsthat China's LCD Panel may impose 12% import
covered by the ITA tariff cuts to zero commitment.tariffs.
"In 2005 all of zero tariffs on IT products may notSome experts said that the tariff's role in international
be much impact, because previously there is overtrade is being gradually weakened. First of all, under
90% of products to achieve a zero tariff." Industrythe framework of the WTO, tariffs have dropped to
veteran Dong Yunting bearish decline in tariffs on thea lower level; Secondly, the Western developed
domestic industry affected, "say, digital Digitalcountries, the use of leading-edge technology, the
watches the camera's core technology lies in thebiggest profit split; third, the developed countries
hands of Japanese companies, tariffs play amore and more use of anti-dumping, technology
protective role has been minimal. "patents, standards and other non-tariff trade barriers
However, there are sources, including Japan, theto protect domestic markets; Fourth, cross-border
United States, including some developed countries aremergers and acquisitions of transnational corporations
being proposed to extend the scope of productsweakens the role of tariffs. Thus, paying attention to
covered by ITA, which may include ITA products notthe use of tariffs to protect domestic industries
previously listed home appliance products, the movewhen should actively carry out technological
will bring China's high-end flat-panel TVs and other TVinnovations to enhance the sustainability of national
is being challenged.industrial development and eventually become bigger
At present ITA agreement, and did not include homeand stronger industry.
appliances, nor will produce color television sets coverData show that China's basic components of the
the CPT, which means that in 2005, import tariffs onsales revenue in 2003 was 3,000 billion yuan, 15.9
CPT CRT is still maintained at about 12%.billion U.S. dollars of export and imports 21.9 billion, is
However, such protection will not take too long, thethe only China's electronic information industry trade
final tariff rate will decline to zero, but the length ofdeficits industry. Industry analysts believe that
time. In fact, the western developed countries havecomponent-based reason for the growing trade
begun proposed consumer electronics products intodeficit is because the majority of multinational
the ITA in order to expand the scope of zero-tariffcompanies are already building factories in China, but
products, the industry used to be such a proposalthe main high-end digital camera watch components
called the ITA II.must also be imported from abroad, such as the
If the household appliances covered by the ITA, theInstrument Industry in 2003 sales of domestic
impact of China's color TV industry will be enormous,enterprises was 50 billion yuan, but the same year,
especially the impact of high-end TVs. The industryimports amounted to 9 billion U.S. dollars. In other
believes that the whole industry chain of China's colorwords, no matter how high the tariff could not
TV will be subject to the impact of falling tariffs,protect this industry.