Arlington, Va. -- The Electronic Industries Alliance (EIA) will direct industry efforts on offshore outsourcing and innovation, international trade, tax policy, environmental concerns, Internet security, and broadband issues as its legislative and policy priorities for 2004. The selection of those priorities was the result of discussion and debate at the 2004 EIA Executive Leadership Forum, held in Palm Beach, Fla., Jan. 28-30. That meeting, an annual event, brought CEOs and senior management of the electronics industry together to discuss a variety of business issues, as well as EIA’s ongoing strong commitment on science and technology education and training.

EIA intends to expand its efforts on science and technology education in a number of ways in 2004. Through its education foundation, the National Science and Technology Education Partnership (NSTEP), EIA will continue its work to attract the interest of school-age children in these key areas. EIA will also strengthen its commitment to educating consumers and representing member companies on electronics recycling and other environmental issues.
 

EIA 2004 POLICY PRIORITIES:

Offshore Outsourcing
EIA is calling on political leaders from both parties to work in partnership with the U.S. high-tech industry and examine not only present-day issues such as offshore outsourcing, but also the very future of American high-tech innovation. As part of this effort, EIA held a two-day ‘war game’ or scenario simulation strategy session called the EIA Prosperity Game on Offshore Outsourcing and Innovation at its 2004 Executive Leadership Forum.

EIA plans to release and distribute a policy playbook of information for opinion leaders and policymakers this spring that will include legislative and regulatory recommendations that emanated from the Prosperity Game on Offshore Outsourcing and Innovation. Over the course of the year, EIA will also continue to meet with members of Congress, the Bush Administration and the Democratic presidential nominee to press for implementation of these recommendations.

International Trade
In the international trade arena, EIA will continue to work with its international counterparts to eliminate tariff and non-tariff trade barriers. The Alliance will also support enactment of bilateral and multilateral Free Trade Agreements, which promote opportunities for American companies, consumers, and shareholders.

Tax Policy
EIA is working to build support for a resolution of FSC/ETI repeal, a likely vehicle for tax policy in 2004. Within this legislation, EIA is advocating an appropriate transition strategy, a domestic manufacturing credit and necessary domestic and international tax reform. Other tax priorities for EIA's members include a permanent and enhanced research and development (R&D) tax credit; a temporary provision for tax relief on the repatriation of cash held overseas; an extension of 50% bonus depreciation; modification of the tax code for long-term manufacturing contracts; and revision of the foreign tax credit carryforward rules.

Environmental Concerns
EIA will continue to serve as the leading advocacy organization on environmental issues for the electronics and high-tech industries. EIA’s Environmental Issues Council will work to reach industry consensus on the issue of financing for electronics recycling. EIA will also develop industry plans for managing the electronics recycling, chemical restrictions, and energy use issues through legislative and voluntary initiatives, and assist industry in complying with reporting requirements related to New England mercury and California design regulations.

Internet Security
EIA will use its involvement in the Internet Security Alliance (ISAlliance) to demonstrate industry expertise and resist efforts in Congress that would regulate or impose government mandates and burdensome reporting requirements on industry for Internet security.

Broadband
EIA will continue to advocate, develop consensus and build momentum for a domestic national broadband strategy. This includes support for tax incentives to encourage the expanded deployment of broadband networks and the passage of a permanent Internet access tax ban that takes into account new technologies. EIA will work closely with the Telecommunications Industry Association (TIA) and the Consumer Electronics Association (CEA) to promote adoption of a national strategy.

World Electronics Forum
The World Electronics Forum (WEF) is a voluntary gathering of CEOs and directors of electronics industries associations worldwide that meets annually to discuss major topics of common interests and adopt and advocate public policy recommendationsand exchange information on services and recent data within for the electronics industries worldwide. EIA and its sector partners will serve as hosts of the 10th WEF, slated for Washington, D.C., September 21-24.

EIA spokespersons are available to speak on these issues at any time. To arrange an interview, please call Neil Gaffney at (703) 907-7792 or by email at ngaffney@eia.org

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About EIA:  The Electronic Industries Alliance (EIA) is a national trade organization that includes the full spectrum of U.S. manufacturers, representing more than 80% of the $400 billion electronics industry. The Alliance is a partnership of electronic and high-tech associations and companies whose mission is promoting the market development and competitiveness of the U.S. high-tech industry through domestic and international policy efforts. EIA, headquartered in Arlington, Va., comprises more than 2,300 member companies whose products and services range from the smallest electronic components to the most complex systems used by defense, space and industry, including the full range of consumer electronic products. The industry provides 1.57 million jobs for American workers.