Briefs: EU welcomes chip trade agreement

Mar 30, 2006

The European Commission welcomed an agreement that will make it easier to trade in semiconductors.

The multi-chip integrated-circuits agreement will eliminate customs duties on chips among the major semiconductor trading nations. Semiconductor products already generally benefit from free trade under the terms of the WTO Information Technology Agreement of 1996. As a recent technological development, however, multi-chip integrated circuits are not covered and still attract various levels of duties world wide.

The MCP agreement will initially enter into force between the European Community, the United States, South Korea and Taiwan on April 1. Japan already applies zero duties on multi-chip integrated circuits and is expected to join the agreement later this year. The agreement is open to the accession of additional members with a production of semiconductors.

Copyright 2006 by United Press International

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