As reported by the Toy Industry Association (TIA), a landmark deal was reached between 54 members of the World Trade Organization (WTO) last week that will extend duty-free treatment to more than 200 information technology products, including certain types of electronic games, toys, and other electronic accessories.
The accord will expand the list of products covered by the Information Technology Agreement (ITA), a trade agreement that requires participants to eliminate tariffs on specified IT goods. Of particular significance to the toy industry, duties will be eliminated on children’s portable, electronic learning devices; video games used with a television receiver; video game consoles; and games that are operated by coins, cash, credit cards, tokens, and other means of payment, among other items.
Under the terms of the agreement, the majority of tariffs on products being added to the ITA will be eliminated within three years, with reductions beginning next year. Compliance schedules will be finalized for implementation this December, and the WTO will continue to review the list of products covered under the ITA to determine whether any further expansion is needed to reflect future technological developments.
