Semiconductor Industry Applauds House Passage of Legislation Granting Permanent Normal Trade Relations with Russia
WASHINGTON, D.C.—Nov. 16, 2012—The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing and design, today applauded the U.S. House of Representatives for approving legislation to grant Permanent Normal Trade Relations (PNTR) with Russia, an effort that will strengthen the U.S. semiconductor industry by improving market access to the world’s ninth largest economy and expanding export opportunities. H.R. 6156 – the Russia and Moldova Jackson-Vanik Repeal Act of 2012 – passed the House today by a vote of 365-43.
“House passage of H.R. 6156 marks an important step forward for American semiconductor companies and workers, as well as the overall U.S. economy,” said Brian Toohey, president and CEO, Semiconductor Industry Association. “Granting Permanent Normal Trade Relations with Russia will reduce trade barriers, improve transparency and accountability, and increase market access opportunities.”
Russia PNTR is necessary in order for American companies to receive the full benefits of Russia’s recent accession to the World Trade Organization (WTO) and subsequent commitment to join the International Technology Agreement (ITA). Without PNTR status for Russia, U.S. companies would have limited rights under WTO rules if Russia failed to comply with its WTO commitments. This could place the American industry at a significant disadvantage in the Russian market in relation to its competitors from other WTO member countries.
Russia represents a growing semiconductor market for U.S. exporters. U.S. exports of semiconductors to Russia have increased dramatically in recent years, from $23.6 million in 2007 to $50.7 million in 2011, an average annual growth rate of 28.8 percent. The U.S. trade surplus in semiconductors with Russia has increased at an average annual rate of 29.7 percent over the same time period.
For more information on Russia PNTR, please view SIA’s Issue Paper.
To view SIA’s recent letter to Congress in support of Russia PNTR, please click here.