The Semiconductor Industry Association today applauded the United States Senate's passage of the Trade Promotion Authority, which will allow the Administration to negotiate to further open foreign markets to U.S. high technology exports.
American semiconductor companies derive more than half of their revenue from overseas sales, and are dependent on having access to fair and competitive markets, the SIA said.
"Many of our foreign competitors -- including Europe and Japan -- have concluded free trade agreements with a number of key markets while the U.S. has waited on the sidelines," said George Scalise, president of the San Jose-based SIA, a chip industry lobby group. "TPA will let the Administration negotiate deals to put American companies on the same competitive footing."
Among the key trade negotiations that the United States will be able to pursue under the TPA are a new round of World Trade Organization (WTO) talks. Within the context of the WTO, the SIA has been pushing for the elimination of tariffs on semiconductors and information technology goods around the world, strengthening intellectual property protection, and maintaining strong U.S. trade laws.
The TPA will also enable U.S. negotiators to pursue free trade agreements in areas like Latin America, which still has high tariffs on many high tech goods, according to the SIA.