The Electronic Industries Alliance (EIA) today disclosed its 2003 legislative and policy agenda following its annual Executive Leadership Forum and a meeting of its Board of Governors. The Executive Leadership Forum, held in Key West, Fla., brought CEOs and senior management of the electronics industry together to discuss the external environment and issues impacting the industry. The gathering focused on challenges such as the crisis in corporate governance, the sluggish business economy and the pending war with Iraq. After three days of discussion and debate, the EIA Board of Governors defined its policy priorities and legislative goals in the areas of tax and economic policy, market access and international trade, environmental policy, broadband access, and information assurance.

Tax and the Economy

Following a discussion of the President’s economic growth package and the Democrat alternatives, the Board of Governors adopted the position to advocate EIA tax policies and principles, which call for the lowering of foreign and domestic tax barriers. Working with the EIA Tax & Economic Policy Committee and the Small and Mid-Sized Business Council, EIA will seek the passage of the President’s growth plan and the inclusion of the following: accelerated depreciation schedules and first-year bonus depreciation, enhancement and permanence of the R&D tax credit, tax relief for overseas profit repatriation, elimination of FICA tax on severance and a broadband tax incentive.

Market Access and International Trade

EIA will continue to collect industry information in China and share it with authorities to ensure China's compliance with its WTO commitments. It will also submit comments to USTR on bilateral Free Trade Agreements to ensure that high tech and business priorities are included, and submit comments to Congressional Oversight groups. EIA will create a working group to coordinate with USTR and other groups on the U.S.'s Zero Tariff proposal and timetable and advocate passage of the Export Administration Act. It will also seek to ensure that new U.S. Customs rules do not place unreasonable burdens on importers and exporters, by submitting comments to trade-related Congressional committees and to Customs.

Broadband

EIA’s Board of Governors expressed support for continued promotion of the benefits of high-speed broadband access as the enabling technology for 21^st century. EIA will advocate a national broadband strategy by the Administration and will continue to work with the Telecommunications Industry Association (TIA) and the Consumer Electronics Association (CEA) on passage of strong deregulatory legislation.

Environment

EIA will continue to lead the electronics industry’s advocacy on the international, federal and state levels regarding chemicals regulation, design and use and electronics recycling issues. The EIA Board of Governors supports a proactive approach and five-year plan for end-of-life and recycling proposals. EIA seeks Congressional passage of and funding for a National Demonstration Project and will actively monitor and seek to influence state activities on end-of-life legislation.

Information Assurance

The EIA Executive Committee expressed support for the Internet Security Alliance’s affiliation with EIA and continued leadership for industry on raising the standards and improving the security of networks and the Internet.

“Technology and the Internet have opened the world’s markets to any manufacturer anywhere in the world,” said Dave McCurdy, president of EIA. “In order to remain competitive in today’s global marketplace, the U.S. electronics industry must be aware of the constantly evolving environment and be prepared to grow and change with it. The Executive Leadership Forum gives our members, which include many of the industry’s leading voices, the opportunity to discuss trends and their impact, strategies to succeed and the industry’s priorities for the year ahead.”

EIA spokespersons are available to speak on these issues at any time. To arrange an interview, please call Michelle McWhinney at 703-465-0276 or email her at michelle@lincolnparkpr.com.