Click here for the Trade Guide

JOINT STATEMENT CONCERNING SEMICONDUCTORS BY THE GOVERNMENTS /

AUTHORITIES OF THE UNITED STATES, JAPAN, KOREA AND THE EUROPEAN

COMMISSION ¹

SEPTEMBER 28, 2006

1. Semiconductors are the building blocks of the information age. They are making

possible continuing revolutionary progress in all facets of life, including

communications, transportation, health care, scientific research, education and

commerce, and are critical to raising global standards of living and contributing

to sustainable economic growth.

2. The parties² to this Joint Statement have achieved virtually barrier-free trade in

semiconductors among themselves, including the elimination of tariffs. They

jointly seek a world environment devoid of barriers to trade and investment, and

support and co-ordinate initiatives in the World Trade Organization (WTO) –

including the Information Technology Agreement (ITA) – to achieve this

objective. They endorse policies – including the protection of intellectual

property, positive approach to basic scientific research, positive approaches to

global environmental protection, and promotion of the information society

through appropriate regulatory and other policies – that will foster sound and

increased economic growth, and continued expansion of the benefits of the

information age. These policies are intended to expand the global demand for

semiconductors.

3. Relations among the parties over issues affecting semiconductors are

characterized increasingly by mutual understanding and cooperation, and the

absence of friction. Cooperative efforts to respond to global challenges are likely

to become more common and more important.

4. Representatives from the Governments / Authorities of the United States, Japan,

Korea and the European Commission, constituting the Founding Members, have

met together regularly since 1996 to discuss and agree on issues affecting their

semiconductor industries, and to receive and discuss reports and

recommendations on policy matters from their industries which meet jointly in

the World Semiconductor Council (WSC).

ARTICLE I. PRINCIPLES

5. The parties share the view that cooperation concerning semiconductors should be

carried out based on the following principles:

5.1. The parties should seek barrier-free trade in semiconductors in markets

worldwide.

5.2. The competitiveness of companies and their products, not the intervention of

governments and authorities, should be the principal determinant of

industrial success and international trade.

5.3. Government and Authorities’ measures should be fully consistent with the

letter and spirit of the WTO Agreements. Government and Authorities

should avoid any form of discrimination.

5.4. The parties recognize that the GATT 1994 condemns injurious dumping, and

reaffirm the need to avoid the problem of injurious dumping through fair and

effective anti-dumping measures consistent with GATT 1994 and the WTO

Agreement on Implementation of Article VI of GATT 1994 (Anti-dumping

Agreement).

5.5. The parties will promote an open, equitable, rules-based, predictable and

non-discriminatory trading system that benefits all parties in the pursuit of

sustainable development.

5.6. The promotion, implementation and adequate enforcement of effective

standards for intellectual property rights protection.

ARTICLE II. GOVERNMENTS AND AUTHORITIES MEETING ON SEMICONDUCTORS

6. A Governments and Authorities Meeting on Semiconductors (GAMS) composed of

representatives from each of the parties at Director General or lower rank official

level from the appropriate economic and trade department of the governments /

Authorities of the parties is established. The parties will notify to the Chair the

names and seniority of representatives in advance of the meeting. The GAMS shall

meet as often as necessary but not less than once a year for the purpose of affording

parties the opportunity to consult on any matters related to the principles of the Joint

Statement and respond to the recommendations elaborated by the WSC.

7. The GAMS will discuss and engage in cooperation concerning global issues related

to semiconductors such as standardization, customs nomenclature, environment,

health and safety at work, intellectual property rights, trade and investment

liberalization, and worldwide market development.

8. The Chair of the GAMS will be held in turn by each Founding Member for a term

of twelve months in the order to be decided by consensus. The Chair will invite the

parties to the annual meeting after the annual meeting of the WSC or at the request

of any other party.

9. The Chair will circulate a draft agenda to the parties, taking account of previous

GAMS conclusions and recommendations made by the WSC. The Chair will draft

meeting conclusions to be adopted by the common agreement of all parties.

10. The parties will meet with representatives of the WSC to receive and discuss the

recommendations of the WSC regarding policies of governments and authorities

which may affect the future outlook of the global semiconductor industry. After

receiving the recommendations of the WSC, the parties will meet among themselves

to discuss issues affecting semiconductor industries, industry recommendations and

appropriate policies and actions of governments and authorities.

11. The Chair may, upon agreement with the other GAMS Members, organize a

workshop on a specific issue of impact to the semiconductor industry. The

workshop would be open to the participation of representatives from governments,

authorities, international organizations, industry, and the scientific / academic world,

as appropriate.

ARTICLE III. MEMBERSHIP

12. Other Governments or authorities whose national/regional industry associations

have joined the WSC may become parties, if they confirm their support for the

objectives of this Joint Statement and conclusions adopted by the GAMS.

ARTICLE IV. REVIEW

13. This Joint Statement will be subject to review every five years. It may also be

modified in whole or in part at any time by mutual consent of the parties.

1 Chinese Taipei has supported the Joint Statement and been accepted as a party since 1999 , and China has

supported the Joint Statement and been accepted as a party since 2006.

2 Governments / Authorities of the United States, Japan, Korea, the European Commission, Chinese Taipei

and China..