Following last night’s Senate vote, the Electronic Industries Alliance (EIA) praised Congress for supporting the U.S.-Chile and U.S.-Singapore Free Trade Agreements (FTAs). EIA, a longtime supporter of liberalized trade, provided testimony to Congressional committees, the U.S. International Trade Commission and the Office of the U.S. Trade Representative on the benefits of these two agreements in the months leading to the vote. In addition, the Alliance issued a letter on July 21, 2003, urging a strong positive Congressional vote. EIA has continually stressed that the electronics industry, as well as the U.S. economy in general, would benefit from enhanced trade relationships with the two countries.

“The expansion of trade with Singapore and Chile will provide new opportunities for the U.S. electronics industry, particularly since more than a third of U.S. jobs in the computer and electronics manufacturing sector are supported by exports,” said Dave McCurdy, president of EIA. “Importantly, these agreements broaden the pool of countries prepared to eliminate tariffs on IT products, and they strengthen standards in key areas such as copyright protection and telecom market access.”

The agreements will have a significant impact of tariffs and duties. The FTA with Chile will remove tariffs on 85% of exports immediately, including key items such as computers and other high-tech equipment. The FTA with Singapore will remove duties from electronics imported from Singapore, leveling the playing field for tariff treatment in comparison with other countries that maintain reciprocal duty-free relations with Singapore.