Dianne Feinstein: “I rise in support of the Craig- Bingaman amendment, urging the renewal of our semiconductor agreement. The agreement has…”

“I rise in support of the Craig- Bingaman amendment, urging the renewal of our semiconductor agreement. The agreement has reduced trade friction and promotes private sector cooperation. It is essential that a new government-to-government agreement is negotiated with Japan before the current agreement is allowed to expire on July 31. The United States and Japan have a significant stake in trade harmony in this important economic sector. The current $100 billion world market for semiconductors is expected to grow to $300 billion by the year 2000. The semiconductor industry is the basis of our electronics industry and an increasingly pervasive part of our everyday life. This agreement, first signed in 1986, creates a regular framework for business and government leaders to meet and review trade issues and business trends. This framework has helped build smooth, steady growth in the industry, defused potential disputes, and promoted trade harmony, rather than the hostility that has characterized other trade sectors. As a replacement, the Japanese electronics industry proposes an industry-to-industry agreement with no government involvement. This industry agreement is unacceptable. It would take no action to ensure continued progress to increase foreign market share in Japan. Without an agreement, in a market downturn, United States producers could be cut out of segments of the Japanese market.…”