SENSE OF CONGRESS REGARDING SEMICONDUCTOR TRADE AGREEMENT BETWEEN UNITED STATES AND JAPAN.

SEC. 1081. SENSE OF CONGRESS REGARDING SEMICONDUCTOR TRADE AGREEMENT BETWEEN UNITED STATES AND JAPAN. (a) Findings.— Congress makes the following findings: (1) The United States and Japan share a long and important bilateral relationship which serves as an anchor of peace and stability in the Asia Pacific region, an alliance which was reaffirmed at the recent summit meeting between President Clinton and Prime Minister Hashimoto in Tokyo. (2) The Japanese economy has experienced difficulty over the past few years, demonstrating that it is no longer possible for Japan, the world’s second largest economy, to use exports as the sole engine of economic growth, but that the Government of Japan must promote deregulation of its domestic economy in order to increase economic growth. (3) Deregulation of the Japanese economy requires government attention to the removal of barriers to imports of manufactured goods. (4) The United States-Japan Semiconductor Trade Agreement has begun the process of deregulation in the semi-conductor sector and is opening the Japanese market to competitive foreign products. (5) The United States-Japan Semiconductor Trade Agreement has put in place both govemmentto-government and industry-to-industry mechanisms which have played a vital role in allowing cooperation to replace conflict in this important high technology sector. (6) The mechanisms include joint calculation of foreign market share, deterrence of dumping, and promotion of industrial cooperation in the design of foreign semiconductor devices. (7) Because of these actions under the United States-Japan Semiconductor Trade Agreement, the United States and Japan today enjoy trade in semiconductors which is mutually beneficial, harmonious, and free from the friction that once characterized the semiconductor industry. (8) Because of structural barriers in Japan, a gap still remains between the share of the world market for semiconductor products outside Japan that the United States and other foreign semiconductor sources are able to capture through competitiveness and the share of the Japanese semiconductor market that the United States and those other sources are able to capture through competitiveness, and that gap is consistent across the full range of semiconductor products as well as a full range of end-use applications. (9) The competitiveness and health of the United States semiconductor industry is of critical importance to the overall 110 STAT. 2672economic well-being and high-technology defense capabilities of the United States. (10) The economic interests of both the United States and Japan are best served by well functioning, open markets, deterrence of dumping, and continuing good cooperative relationships in all sectors, including semiconductors. (11) A strong and healthy military and political alliance between the United States and Japan requires continuation of the industrial and economic cooperation promoted by the United States-Japan Semiconductor Trade Agreement. (12) President Clinton has called on the Government of Japan to agree to a continuation of the United States-Japan Semiconductor Trade Agreement beyond the current agreement’s expiration on July 31, 1996. (13) The Government of Japan has opposed any continuation of the United States-Japan Semiconductor Trade Agreement to promote cooperation in United States-Japan semi-conductor trade. (b) Sense of Congress.— On the basis of the findings contained in subsection (a), it is the sense of Congress that— (1) it is regrettable that the Government of Japan has refused to consider continuation of the United States-Japan Semiconductor Trade Agreement to ensure that cooperation continues in the semiconductor sector beyond the expiration of the agreement on July 31, 1996; and (2) the President should take all necessary and appropriate actions to ensure the resumption and extension of the United States-Japan Semiconductor Trade Agreement beyond July 31, 1996. (c) Definition.— For purposes of this section, the term “United States-Japan Semiconductor Trade Agreement” refers to the agreement between the United States and Japan concerning trade in semiconductor products, with arrangement, done by exchange of letters at Washington on June 11, 1991.