Statement on the Japan-United States Semiconductor Trade Agreement

I am announcing today that the United States and Japan have reached an agreement on semiconductor trade. This agreement represents an important step toward freer and more equitable world trade and will enhance the ability of our semiconductor manufacturers to compete fairly in the Japanese market. It will also help prevent Japanese manufacturers from dumping semiconductors in the United States and in third countries.

This agreement successfully addresses a series of trade complaints raised by the U.S. semiconductor industry and this administration charging Japanese chip manufacturers with impeding U.S. access to their market, while dumping semiconductors on world markets and violating U.S. dumping laws. With the agreement of the Government of Japan to this landmark pact, the United States suspends the pending 301 market access case and EPROM semiconductor dumping case. The 256K semiconductor dumping case will be suspended August 1. By holding to our free market principles, but at the same time insisting on fair trade, we have created a climate in which the U.S. semiconductor industry should substantially increase its sales position in Japan. We have also set an important precedent to help prevent future unfair trade practices in other high technology industries.

As I have said time and again, we will not stand idly by as American workers are threatened by unfair trading practices. We have and we will take the tough actions that are necessary to ensure that all nations play by the same rules. Today's agreement shows that vigorous enforcement of existing laws can open markets. To succumb to the temptation of protectionism will benefit no one. This is an historic agreement. U.S. Trade Representative Yeutter, Secretary of Commerce Baldrige, and the U.S. negotiating team are to be commended for their tenacity, skill, and resoluteness during the months of intense negotiations.