The United States representative said the country has signed a multi chip module of zero tariff agreement

Thursday, U.S. Trade Representative Rob Portman (Rob Portman) announced that the United States has signed the tariff for a class of semiconductor products to zero the agreement, the products are widely used in mobile phones, digital cameras and other small electronic devices.

The United States has reached an agreement with the European Union, Japan, South Korea and Taiwan, China, the so-called multi chip module (MCP) tariff reduced to zero. Electronics manufacturers through the MCP can be loaded in a smaller space more chips. Under the new agreement, the new zero tariff policy will take effect in January 1st next year.

Portman pointed out that this agreement is a victory for U.S. exporters, the World Trade Organization (WTO) may promote the Doha Development Agenda (DDA). The parties about agricultural subsidies acceptance criteria has led the negotiations failed to reach an agreement, but not long ago, US officials said agricultural negotiations has made enough progress, so it is also for other negotiations.

Portman said at a press conference held in Washington, "one of the main goals of the United States in the DDA negotiations is to eliminate all tariffs on manufactured goods, MCP new protocol for DDA negotiations is a stimulant for."

Portman is about to begin a global visit to U.S. trading partners to seek support for a new WTO agreement. Today, he pointed out that the new chip protocol is an important step in reaching a global agreement, may join China and other developing countries.

Global chip module total trade of about $4 billion. Compared with the zero tariff of the new agreement, the United States for the current tariff of 2.6% for MCP, South Korea is up to 8%, the EU countries up to 4%. Japan and Taiwan, China has not imposed tariffs on chip module products.

U.S. semiconductor manufacturers welcomed the new agreement. TI (TXN) President Dan F Layton - Templeton (Richard) pointed out that the zero tariff agreement is a great victory". Intel (INTC) Craig, chairman of the board of directors - (Craig Barrett) believes that this is an important step towards free trade in the semiconductor technology industry".

Headquartered in the United States accounted for more than half of the company's total revenue in the world MCP, the United States MCP exports of about $1 billion. U.S. trade officials pointed out that the total output of the global chip module, the new agreement reached a total of more than 70% of the total share of the five.