SIA Applauds Landmark Trans-Pacific Partnership Agreement

by Semiconductor Industry Association

NEW RULES IN TPP WILL STRENGTHEN DIGITAL ECONOMY, PROMOTE SEMICONDUCTOR TRADE

WASHINGTON—Oct. 5, 2015—The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing, design, and research, today applauded the 12 countries involved in Trans-Pacific Partnership (TPP) talks for concluding negotiations on this massive trade deal that will promote jobs and economic growth in the United States and around the world. The countries – Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam – announced the deal today following a ministerial meeting in Atlanta.

“Free trade is essential to the American economy and the U.S. semiconductor industry, which exports more than 80 percent of its products to customers overseas,” said John Neuffer, president and CEO, Semiconductor Industry Association. “The TPP will strengthen America’s standing in the world and help our industry maintain leadership in the global market. It is the first major trade agreement that seriously contemplates how trade needs to be done in the global digital economy of the 21st Century. We applaud negotiators for reaching this landmark agreement and urge Congress to approve it expeditiously.”

The TPP contains several new features, including rules preventing market-access restrictions on commercial products with encryption, requirements to ensure cross-border data flows, rules against localization requirements for computer infrastructure, and non-discriminatory treatment of electronically transmitted digital products. Other key provisions included are simplification and harmonization of customs and trade procedures, commitments ensuring state-owned enterprises compete fairly and transparently without undue government advantage, and new procedural safeguards and increased penalties to protect trade secrets and other forms of IP.

The agreement also has a provision that requires TPP members to join the WTO Information Technology Agreement (ITA), a key trade pact that eliminates tariffs on tech products.

The announcement of the deal today allows the Obama administration to immediately notify Congress of its intent to enter into a trade agreement. Legislation to implement the TPP in the U.S. will proceed under recently enacted Trade Promotion Authority (TPA) procedures. TPA requires publication of the agreement and floor consideration of an implementing bill in the House and Senate without amendments. A simple majority vote is needed for passage.

About SIA

The Semiconductor Industry Association (SIA) is the voice of the U.S. semiconductor industry, one of America’s top export industries and a key driver of America’s economic strength, national security, and global competitiveness. Semiconductors – microchips that control all modern electronics – enable the systems and products we use to work, communicate, travel, entertain, harness energy, treat illness, and make new scientific discoveries. The semiconductor industry directly employs nearly a quarter of a million people in the U.S. In 2014, U.S. semiconductor company sales totaled $173 billion, and semiconductors make the global trillion dollar electronics industry possible. SIA seeks to strengthen U.S. leadership of semiconductor manufacturing, design, and research by working with Congress, the Administration and other key industry stakeholders to encourage policies and regulations that fuel innovation, propel business and drive international competition. Learn more at www.semiconductors.org.