SIA Supports Administration's Intentions to Enter Free Trade Agreements with Chile and Singapore

Business Wire, Jan 31, 2003

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 31, 2003

SIA declared its full support for free trade with Chile and Singapore, as President Bush notified Congress yesterday of his intention to sign bilateral free trade agreements, which contain important market access provisions that increase export opportunities for U.S. high-technology firms. Under Trade Promotion Authority rules, Congress now has 90 days to consider the U.S.-Singapore and U.S.-Chile Free Trade Agreements.

"American chipmakers are successful when they are able to compete on fair terms," noted SIA president George Scalise. "Consequently, it is vital to our industry to continue to eliminate tariffs and trade barriers through bilateral free trade agreements."

U.S. semiconductor firms are global leaders, commanding over half of worldwide market share. Overseas sales account for more than 60 percent of SIA members' revenues, with the importance of foreign markets expected to grow. In 2001, U.S. exports of high-technology products and services to Chile totaled $865 million, while U.S. high-technology exports to Singapore in 2002 exceeded $5.5 billion.

The U.S.-Chile Free Trade Agreement calls for immediate tariff elimination on computers and other information technology products. Through the agreement, Chile commits to liberalization of its telecommunications and computer services sectors. The agreement also contains key sections on government procurement, intellectual property, and e-commerce.

"The U.S.-Chile Free Trade Agreement represents a critical mechanism to lower trade barriers and strengthen commercial relations between the two countries," Scalise stated, adding, "USTR's successful completion of bilateral negotiations with Chile will contribute to the efforts to secure the Free Trade Agreement of the Americas and increase trade within the Western Hemisphere."

Singapore already has removed tariffs on information technology products as a signatory to the WTO's Information Technology Agreement. The U.S.-Singapore Free Trade Agreement secures further market access in services, specifically telecommunications and computer-related services. The e-commerce provisions remove duties from electronically-delivered products and services. In the agreement, Singapore commits to uphold protections for U.S. investments and intellectual property rights.

Scalise remarked, "The U.S.-Singapore Free Trade Agreement builds on an established high-tech trading relationship by opening vital information services that will spur demand for U.S. technology products in Singapore. In addition, the agreement is an important step toward a potential U.S.-ASEAN Free Trade Agreement."

SIA is a member of the U.S.-Singapore FTA Business Coalition and the U.S.-Chile Free Trade Coalition, established by businesses and associations to support Congressional approval of the two agreements.

About the SIA

The SIA is the leading voice for the semiconductor industry and has represented U.S.-based manufacturers since 1977. SIA member companies comprise approximately 90% of U.S.-based semiconductor production. Collectively, the chip industry employs a domestic workforce of 284,000 people. More information about the SIA can be found at www.sia-online.org.