Press Release

TRADE: U.S. High Tech Trade Coalition Press Release on Momentum Toward Hemispheric Free Trade

For Immediate Release
November 21, 2003

Industry Will Work to Achieve Maximum Liberalization

Miami - Members of the U.S. High-Tech Trade Coalition in Miami for the Free Trade Area of the Americas (FTAA) Ministerial reiterated today that they believe that the Ministerial Declaration represents progress and allows for the possibility of a high level of commitments, although it is not the preferred framework that industry seeks.

"We are pleased that the FTAA is moving forward, which is a positive sign for world-wide trade. The proposed framework isn't perfect, but it is significant that the FTAA countries have been able to reach an agreement on a comprehensive framework for commitments in all key sectors," according to Colleen Morton, VP of the Information Technology Industry Council, one of the members of the High-Tech Trade Coalition.

The U.S. high-tech industry emphasized that it is committed to working with the Administration, Congress, and industry across the hemisphere to achieve maximum liberalization and strong rules in all the disciplines that are critical to the high-tech sector, including tariff elimination, intellectual property, investment, services and government procurement.

While 61 countries around the world have signed on to the ITA to eliminate tariffs on IT products, only five Western Hemisphere countries have done so. Meanwhile, Brazil and Argentina have among the highest tariffs on PCs in the hemisphere (26% and 16% respectively). According to the American Electronics Association (AeA), U.S. high-tech exports to the 33 FTAA partners totaled $58 billion in 2002, while U.S. imports of high-tech products from those countries amounted to $47 billion - resulting in an $11 billion surplus for the U.S. high-tech industry.

?If the U.S. can eliminate remaining barriers to trade in high-tech products and services through the FTAA, we would expect significant increases in trade and investment in the high-tech sector throughout the hemisphere,? said Jennifer Greeson, spokeswoman for Intel Corporation.

The HTTC members were heartened by Brazilian Foreign Minister Celso Amorim's statement that Brazil wants an "ambitious and balanced agenda."

?This is an important step toward the serious negotiations that now need to begin in earnest,? Greeson stated.

The high-tech industry expressed their belief that progress in the FTAA would be bolstered by the Administration's ambitious agenda of bilateral and sub-regional trade negotiations which, following this week's announcements, will cover two-thirds of the population and GDP in the hemisphere. Comprehensive agreements with Panama, Andean and Central America countries would provide an aggregate export opportunity of nearly $4 billion dollars for the US high-tech industry.

Members of the High-Tech Trade Coalition supporting this release include: AeA - Association For Competitive Technology - Computing Technology Industry Association - Electronic Industries Alliance - Information Technology Association Of America - Information Technology Industry Council - National Venture Capital Association - Semiconductor Industry Association - Software & Information Industry Association

For More Information contact: Jennifer Greeson, Intel @ (202) 320-8532.