Market Access

Company information

	HP Position

As a global company, HP is dedicated to free trade and the reduction of barriers across borders.  Free trade provides companies increased market access in developed and developing countries alike, allowing companies to expand their product and service offerings, as well as increase consumer access and choice.  Enhanced market access can spur economic growth, foster new jobs, enable entrepreneurialism, enhance education, and raise standards of living.  Free trade can also play an important role in promoting democracy, labor rights and human rights. HP is committed to ensuring that foreign markets are open to IT goods and services, and that governments commit to maintaining such openness. 

Opening global markets for products and services can be achieved through the effective negotiation of trade agreements. HP’s objective is to work to support the favorable resolution during the negotiation process of the following core issues:

• Elimination/reduction and phase-out of tariffs on IT products
• Reduction / elimination, where possible, of NTBs. For example: the simplification and harmonization of Customs processes and procedures (aka trade facilitation), and reduction /elimination, where possible, of other NTBs such as redundant testing and certification requirements for IT products
• Fairness in government procurement
• Liberalization in the trade of IT and related services

The issue

Over 60% of HP revenues result from sales outside the U.S.  Access to international markets is vital for global companies like HP that conduct business in more than 170 countries around the world.

Currently, there are several trade agreements under negotiation or consideration that may benefit HP.  Some of these agreements are multilateral in nature and are under the guidance and jurisdiction of the World Trade Organization (WTO), while others are between nations or groups of nations.  These multilateral, regional and bilateral agreements give companies the opportunity to advance their international trade policy agenda and market access objectives.

• Multilateral opportunities:
  • Accession: The WTO provides for country accession negotiations and resulting agreements that require applicants to implement the basic rules of international trade. In addition, countries applying to the WTO are required to negotiate with all member countries, which provides the opportunity to seek greater commitments and increased market access (e.g., commitment to join the plurilateral WTO Information Technology Agreement [ITA]). Today, countries such as Russia are working on WTO Accession. If accession negotiations are successful, when country commitments are implemented, companies would be provided a fair and predictable market environment in these growing economies, which will likely increase interest in further investment.
  • Doha Development Agenda: The current round of multilateral trade talks, the Doha Development Agenda, or the Doha Round, is of preeminent interest because the negotiations aim to further liberalize trading rules and provide for increased country commitments. Examples include the further reduction, and where possible elimination, of tariff and non-tariff barriers to worldwide trade in IT goods and services. This will help to create a level playing field, as well as binding commitments on Trade Facilitation, which seek to standardize and harmonize Customs processes and procedures.
• Regional and bilateral opportunities: At the regional and bilateral level, the worldwide proliferation of free trade agreements (FTAs) provides opportunities to address country specific tariff and non-tariff barriers to trade.  In addition, bilateral and regional FTAs (e.g.,  EU – Mexico FTA, U.S. – Singapore FTA, NAFTA, EFTA) provide the opportunity to support multilateral policy objectives. In recent years, governments have more aggressively pursued the establishment of FTAs with their trading partners. The worldwide proliferation of and country (e.g., U.S., the EU, and others) participation in FTAs makes them increasingly important to global companies like HP.

	Impact on HP

• Tariff barriers to trade: The World Trade Organization (WTO) Information Technology Agreement (ITA) eliminates tariffs on specified IT products.  Currently, there are 70 signatories to the ITA, with developing country membership slated to rise in the near-term. ITA signatories represent an estimated ninety-seven percent of worldwide trade in information technology products. Nevertheless, the ITA does not cover all IT products and many technology companies continue to pay duties on products not covered by the Agreement.   These duties increase company operating costs and can impact strategic business decisions, while negatively impacting consumer costs.
• Trade Facilitation and other Customs barriers:   Outdated, inefficient, and often manual country specific Customs processes and procedures, as well as other Customs related barriers, unnecessarily increase the costs of international trade and delay product time to market. 
• Non-tariff barriers to trade: Other non-tariff barriers such as redundant testing and certification requirements for IT products are increasingly a concern since these requirements are time consuming and costly for the industry. Barriers to trade that result in delays to market are burdensome to high-tech companies as IT/ICT products generally have a short product lifecycle due to the rapid pace of innovation. 
• Government procurement: An estimated $287 billion in government procurement opportunities worldwide remain closed off to foreign suppliers.  A key item in many trade negotiations is attaining commitments to transparency, openness and due process in government procurement.  Success in gaining agreement on procurement transparency will reduce corruption and permit companies to compete on a level playing field for government contracts worldwide. 
• IT and related Services: Many countries have opened their markets to technology goods, but maintain restrictions on technology (e.g., computer) and related services.  HP understands the importance of ensuring that foreign markets are open to IT services and that governments commit to maintaining such openness.

	The issue

• HP seeks a successful conclusion to the Doha Development Round.
• HP actively works with governments globally to advocate for the resolution of our core objectives, including, the immediate elimination of tariffs and the reduction/elimination of non-tariff barriers on IT products. For example, securing increased ITA participation through FTA or WTO accession negotiations will provide for increased duty-free treatment for IT/ICT goods.
• HP supports trade negotiations in partnership with various associations and trade groups as well as in direct partnership with government representatives.