AEA Urges Caution On Close of WTO Meeting; ``Let's Look Ahead Not Back''.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Dec. 6, 1999--

American Electronics Association (AEA) President and CEO Bill Archey today cautioned against criticizing the end of last week's WTO Ministerial meeting in Seattle and applauded "the announced intention to get matters right rather than rush into an inadequate agenda" for a new trade round.

"There's no need to focus on what didn't happen last week. Instead, AEA accepts the decision of the trade ministers that more time is needed to define the agenda for the new trade round and to work out certain 'early harvest' agreements. As the century turns in a few weeks, let's look ahead, not back," Archey said.

Archey added: "AEA wants this done right, and we thus look forward to continue to work with the U.S. and other governments to ensure that issues of key importance to the high-growth high-tech sector are successfully included in the new round or concluded prior to the start of a new round.

"But this is more than a high-tech issue," Archey continued. "The fundamental fact is that expanding global trade will engender tangible benefits throughout the American economy. Lower trade barriers have brought Americans a higher standard of living."

AEA Senior Vice President Timothy Bennett, who was at the Seattle meeting, noted that, as the largest U.S. export sector, the high-tech sector has long supported the further opening of foreign markets. In addition, the information technology sectors in the 45 signatory countries of the Information Technology Agreement (ITA) (signed in 1997) have already begun to benefit from the phase out of tariffs provided for under that agreement.

Not all of AEA's objectives for the Seattle Ministerial need to be part of a new trade round, Bennett indicated, but "instead can be agreed to now in order to further facilitate trade quickly in this rapidly changing industry. AEA believes the U.S. government must continue to seek the rapid conclusion of the so-called ITA II agreement, which would expand the product coverage of the ITA I into important additional areas."

AEA's key objectives are as follows:

-- Establishment of a WTO working group on e-commerce to improve

understanding of trade-related e-commerce issues.

-- Conclusion of negotiations on "ITA II," i.e., the extension of

the product coverage of the Information Technology Agreement

(ITA).

-- Agreement by a sufficient number of countries (the so-called

critical mass) on an agreement on Accelerated Tariff

Liberalization (ATL). The ATL initiative would create a voluntary

agreement under the WTO which will require all signatory

countries to phase out all customs duties on an MFN basis in

eight sectors.

-- Improvements in the WTO Agreement on Government Procurement to

improve the transparency in procedures and an eventual increase

in the number of signatory countries.

-- Agreement to include industrial tariffs as an agenda item for the

new round.

-- No re-opening of the WTO agreement on Intellectual Property (the

TRIPS Agreement) and improved implementation by developing

countries of their obligations under the agreement.

-- Agreement to negotiate further improvements in comments for

providing telecommunications services and financial services,

both of which will enhance the global development of e-commerce.

The American Electronics Association (AEA) is the nation's largest high-tech trade group, representing more than 3,000 U.S.-based technology companies. Membership spans the industry product and service spectrum, from semiconductors and software to computers, Internet and telecommunications systems and services. With 18 regional U.S. councils and offices in Brussels, Tokyo and Beijing, AEA offers a unique global policy grassroots capability and a wide portfolio of valuable business services and products for the high-tech industry. For 56 years, AEA has been the accepted voice of the U.S. technology community.