The next wave of connected and intelligent technologies, including sensors,...
2021-03-03 2 ENGLISH REPORTS
The 1980s began a period in which semiconductors were central to major trade conflicts. In contrast to today, the US industry was the instigator of the fight. The sector began to organize itself politically when Intel and four other IDMs formed the Semiconductor Industry Association (SIA), in 1977.7 Table 1 provides a timeline of key policy events starting then. In 1981–82, the semiconductor industry fell into a cyclical downturn in the midst of a US recession. Japanese firms enjoyed major gains, especially in the DRAM market. The SIA pressed the US government for action, blaming Japanese nontariff barriers and subsidies. The response was a US–Japan High Technology Working Group, which negotiated over 1982 and 1983 for greater US participation in the Japanese market. The limited policy change to emerge from the negotiations was that each country agreed to reduce its Most Favored Nation (MFN) tariffs on semiconductors.8
As industry conditions improved, US concerns with Japan temporarily went away. The industry began to suffer again in 1985, however, and the SIA became more aggressive in demanding government action. With the continued appreciation of the dollar and a growing trade deficit, the Reagan administration became more hospitable to the industry’s demands, seeing semiconductors as one more in a long series of trade concerns with Japan.9 In June 1985, the SIA officially filed a petition under Section 301 of the Trade Act of 1974, voicing three issues. The main complaint was that the US industry lacked access to Japanese firms using semiconductors. Despite Japan’s removal of quotas beginning in 1975 and its later reduction of its tariffs, the US industry remained stuck at little more than 10 percent of the Japanese market. The other two complaints involved Japanese government policies that encouraged dumping by Japanese firms in the United States and in third markets.
标签： ENGLISH REPORTS