by John Neuffer, President and CEO
The U.S. International Trade Commission (ITC) has found what SIA has long held: the Trans-Pacific Partnership (TPP) would strengthen U.S. economic growth, increase U.S. exports, and create U.S. jobs.
In a report released yesterday, the ITC found by 2032 the TPP would increase U.S. annual real income by $57.3 billion, boost U.S. GDP by $42.7 billion, and create 128,000 U.S. jobs. Additionally, U.S. exports to TPP countries would grow by $57.2 billion (5.6 percent), while U.S. imports from those countries would increase by $47.5 billion (3.5 percent). Other analyses, including one by the nonpartisan Peterson Institute, have found even more significant economic benefits of implementing the TPP.
In addition to the economic findings of the ITC and others, the TPP provides numerous benefits to both the U.S. semiconductor industry and America’s global leadership. The agreement would promote free trade and regulatory transparency, eliminate tariffs on thousands of semiconductor-enabled products, and facilitate the free flow of data across international borders.
SIA testified before the ITC in January about the critical importance of the TPP to the U.S. semiconductor industry and our economy. Our core message was that trade is vital to the semiconductor industry’s ability to compete, innovate, and grow. SIA outlined how the TPP would: 1) increase access to the huge and fast-growing markets in the Asia-Pacific region; 2) strengthen the global semiconductor supply chain; and 3) update trade rules to reflect the way trade is done in the 21st Century.
The ITC report specifically references the TPP’s benefits to the semiconductor industry. For example, the TPP provisions related to encrypted products would help protect trade flows of hundreds of billions of dollars of semiconductors and other tech products. New protections in the agreement for trade secrets would also address the substantial risks of trade secret theft facing the semiconductor industry and other sectors selling their goods in the Asia-Pacific.
Semiconductors are America’s third-largest manufactured export, behind only cars and airplanes, and a major driver of growth in our economy. While U.S. semiconductor companies perform most of their manufacturing in America, the vast majority (82 percent) of their products are shipped to customers overseas. This means that free trade isn’t just important to our industry – it’s essential.
The TPP would promote free trade and allow U.S. semiconductor companies and businesses throughout our economy to access markets in the Asia-Pacific region, which accounts for 60 percent of global GDP and 50 percent of international trade. Just as importantly, the TPP would allow the United States to take the lead in writing the rules for trade in today’s complex, globalized economy. If we don’t lead, our competitors will.
We look forward to reviewing the ITC’s lengthy report in more detail. We urge swift congressional approval of the TPP and look forward to working with Congress and the Administration to bring this about.
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