Global Trade
Intel advocates for robust free trade policies, including low tariffs and minimal trade barriers, which are essential for its global operations and economic growth. As a proud American company with a presence in over 50 countries, Intel believes that such free trade policies are crucial for expanding market opportunities and driving technological innovation.
The semiconductor industry, a major U.S. export sector, benefits significantly from these policies, with Intel leading as the largest U.S. semiconductor manufacturer and a global pioneer in computing technology. Despite conducting approximately three-quarters of its advanced manufacturing and research and development (R&D) in the U.S., Intel derives over three-quarters of its revenue from international markets.
Intel is dedicated to adhering to global trade regulations and compliance standards, ensuring that its operations align with international laws and ethical practices to promote fair and responsible business conduct worldwide. Intel's policy positions aim to reduce tariffs and trade barriers, support comprehensive trade agreements, and advocate for clear export control regulations to facilitate international trade while balancing national security. Intel promotes resilient global supply chains, stable investment environments, and efficient trade facilitation.
Key Issues
Global Trade Policy
Trade Agreements
Comprehensive trade agreements facilitate market access and are crucial for Intel's global operations. Intel supports agreements like the USMCA and potential new deals in Asia and Europe, as they provide a predictable and stable trading environment, reduce trade barriers, and enhance the protection of intellectual property rights. Ensuring that the USMCA agreement remains trilateral is important, as open trade with Mexico is vital for maintaining a robust supply chain and market access. Intel supports efforts to expand the rules of origin chapter to include critical sectors such as semiconductors, broaden membership to include countries like Costa Rica, and update support for critical minerals within the USMCA.
Global Supply Chains
The resilience and diversification of global supply chains are crucial for ensuring a stable supply of critical components and materials for semiconductor manufacturing. Intel supports policies that enhance supply chain resilience, reduce dependency on single sources, and mitigate risks associated with supply chain disruptions.
Non-Tariff Barriers
Non-tariff barriers, such as complex regulatory requirements and technical standards, can hinder the export and import of semiconductors. Intel seeks the removal of these barriers to facilitate smoother international trade, reduce compliance costs, and ensure that its products can reach global markets efficiently.
Customs and Trade Facilitation
Customs and Trade Facilitation
Intel supports public policies that help open markets, enhance supply chain resilience, and ensure seamless customs processes. Intel values policies that streamline customs procedures and align different countries' customs systems, which are crucial for its global operations spanning over 50 countries.
ICT Tariffs
The U.S. government should continue to pursue an ambitious expansion of the zero-tariff WTO Information Technology Agreement (ITA). Intel supports this expansion as it benefits U.S. technology leaders by reducing costs and enhancing market access for information and communication technology products.
WTO Moratorium on Customs Duties
Intel strongly supports extending and making permanent the WTO moratorium on customs duties. This policy is critical for allowing data to flow between teams without incurring prohibitive costs, enabling Intel to operate efficiently in multiple countries.
Digital Trade Policy Positions
Localization Requirements
FTAs should prevent governments from requiring the localization of R&D, intellectual property, and manufacturing within their borders as a condition of market access. Intel opposes such measures as they undermine competition, reduce global trade, and stifle innovation, which is especially harmful to the tech sector.
Commercial Encryption
Robust encryption technology is necessary to protect digital devices and networks. Intel supports the removal of regulatory barriers to the use of cryptography, as such barriers can decrease the overall security of computing devices and the internet, making them more vulnerable to cybersecurity attacks.
Technology Transfer
Broad compulsory licensing requirements or requiring unnecessary confidential information as a condition of product approvals and market access are on the rise in emerging markets. Intel advocates for the U.S. government to prioritize the removal of these barriers to international trade to protect proprietary technologies and maintain competitive advantage.
Intel supports public policies to help open markets, enhance supply chain resilience, and ensure seamless customs processes that eliminate unnecessary regulations worldwide. We value policies that streamline the process and ensure that different countries' customs systems align. Maintaining modern and easy-to-follow customs and trade procedures is highly important to major global supply chain participants like Intel. Our business activities span over 100 countries, with nearly 80% of sales taking place outside the United States. Intel heavily depends upon the ability to quickly move products across international borders cost-effectively and with minimal burdens. Such policies ensure that any consumer can access the best available products at market-based prices.
Related Links
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Ideas and perspectives promoting a thriving innovation economy from Intel’s public policy team.