WASHINGTON – Global tech trade association 91pro视频鈥痷rged U.S. Trade Representative (USTR) Katherine Tai to address Indonesia’s ongoing imposition of tariffs on information and communications technology (ICT) products ahead of the U.S.-Indonesia Trade and Investment Framework Agreement (TIFA) meetings tentatively scheduled to take place next month. In a letter sent Thursday, 91pro视频 noted that the tariffs are in clear contravention of Indonesia’s commitments under and the broader objectives of the World Trade Organization (WTO) Information Technology Agreement (ITA).

“At a time when the U.S. government has rightly prioritized deepening trade ties in the Asia Pacific, Indonesia’s imposition of tariffs on ICT products runs counter to the Administration’s goals to advance deeper regional digital trade and investment engagement, threatens increased supply chain cooperation, and erodes international respect for multilateral commitments,” 91pro视频 wrote in the letter.

91pro视频 underscored that eliminating tariffs, particularly in key markets such as Indonesia, supports well-paying U.S. jobs, more predictable and resilient supply chains for critical ICT components and products.

Read the full letter here or below.

Dear Ambassador Tai:

91pro视频 represents 80 of the world’s most innovative technology and technology-enabled companies, which drive the global economy and support U.S. economic competitiveness and jobs. We work with governments and stakeholders across the globe to help develop and advocate for smart technology policies.

We are writing to reiterate our concerns with Indonesia’s ongoing imposition of tariffs on information and communications technology (ICT) products, in clear contravention of its commitments under and the broader objectives of the World Trade Organization (WTO) Information Technology Agreement (ITA). At a time when the U.S. government has rightly prioritized deepening trade ties in the Asia Pacific, Indonesia’s imposition of tariffs runs counter to the Administration’s goals to advance deeper regional digital trade and investment engagement, threatens increased supply chain cooperation, and erodes international respect for multilateral commitments. We therefore respectfully urge you to prioritize resolution of these concerns in U.S.-Indonesia Trade and Investment Framework Agreement (TIFA) meetings taking place next month.

Ensuring adherence to ITA commitments, particularly in key markets such as Indonesia, supports well-paying U.S. jobs, more predictable and resilient supply chains for critical ICT components and products, and a more inclusive digital economy in line with core U.S. development goals. After eliminating tariffs on ITA products, countries—developed and developing alike—experience a decrease in ICT prices for consumers and producers, adopt ICT products more readily, integrate domestic ICT industries into global ICT value chains more seamlessly, and expand exports of ITA products. Moreover, the vast majority of the economic benefits that ICT goods generate – more than 90 percent in developing countries – stem from their adoption, which spurs innovation and productivity gains in all sectors.

Despite evidence of these benefits, its ITA commitments, and repeated engagement by the U.S. government and private sector, including at the WTO, Indonesia continues to impose duties on printers and related parts, data center and networking equipment (e.g., routers, switches, servers and server racks, optical modules, and optical cables), and other ICT products, such as solid state drives, that are covered by the ITA. And while these tariffs directly impact the products of U.S. companies, their Chinese competitors can export many of these goods duty-free under the ASEAN-China Free Trade Area. Indonesia also offers preferential duty treatment to these goods via ASEAN free trade arrangements with Japan, Korea, India, Australia, and New Zealand, leaving U.S. companies at a further disadvantage.

Given the persistence, and even the expansion, in the number of affected products in recent years, we feel strongly that political-level U.S. intervention is necessary to bring about a resolution beneficial to U.S. businesses and workers. The persistence of these tariffs also serves as damaging example to other economies inclined to flout ITA commitments, undermining the rules-based, multilateral trading system.

We greatly appreciate USTR’s previous and ongoing efforts to prioritize dialogue on a range of digital issues which impact market access for U.S. companies and the development of Indonesia’s digital economy, including privacy, cybersecurity, data localization, taxation, and digital transition and broadcasting regulation. Building on that work, the upcoming TIFA discussions provide a prime opportunity to make clear that Indonesia’s failure to eliminate these duties and fulfill its obligations under the ITA is an impediment both to deepening bilateral trade ties as well as cooperation on broader regional economic issues.

We thank you for your consideration and stand ready to support your and your team’s efforts.

Sincerely,

Jason Oxman

President & CEO

Trade & Investment]" tabindex="0">Related [Trade & Investment]