SIA Applauds Efforts to Break Logjam in Trade Talks; Resolution of Agriculture Dispute Would Help Progress on Technology Issues.

SAN JOSE, Calif. -- The Semiconductor Industry Association (SIA) today applauded the efforts of the United States Trade Representative to achieve a breakthrough on World Trade Organization talks now under way, which are currently being hampered by disagreements over agriculture issues.

"I congratulate Ambassador Portman on taking the lead to address the outstanding issues that have prevented forward progress on a number of important WTO negotiations, including those that affect information technology products," said SIA President George Scalise. "Over three quarters of US-owned wafer capacity is in this country despite the fact that three quarters of our sales are outside the US -- that means that free and fair market access is vital to us," added Scalise.

One issue of particular importance to the SIA and its members are talks being held on Non-Agricultural Market Access (NAMA). The NAMA discussions could lead to further market opening for key information technology products.

"The SIA has supported tariff-free trade in semiconductors and information technology products since its inception -- in fact, we worked with the US government to eliminate America's tariff on semiconductors over two decades ago," said Scalise. "US companies have the lead in world market share for semiconductors. Where we are allowed to compete on the basis of our technology, price and quality unencumbered by government barriers, we are successful. The NAMA talks are thus very important to our industry and to consumers worldwide who will benefit from lowered cost of access to IT products," Scalise concluded.

SIA members are also committed to ensuring that all competitors play by the same rules. SIA has long supported maintenance of trade laws that allow countries to take action against dumping and trade-distorting subsidies. Companies must be able to compete fairly to recoup the cost of their investments. Companies that rely on free competitive capital markets and free and fair trade must not be forced to compete against foreign governments. A number of WTO members have put forward proposals that would severely damage the ability of US firms to use the trade laws. These proposals must not be adopted by the WTO.

About the SIA

The SIA is the leading voice for the semiconductor industry and has represented U.S. semiconductor companies since 1977. Collectively, the chip industry employs a domestic workforce of 225,000 people. More information about the SIA can be found at www.sia-online.org.