Say What? TI explains impact of the Information Technology Agreement expansion between U.S., China

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Richard Templeton, CEO of Texas Instruments, believes that the expansion of the Technology Agreement will help expand the global economy.

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Danielle Abril

Staff Writer- Dallas Business Journal

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A long-awaited agreement between the U.S. and China to expand the Information Technology Agreement will help companies such as semiconductor maker Dallas-based Texas Instruments accelerate innovation within the industry.

President Obama announced the news Tuesday regarding the deal that provides duty-free treatment of information and communications technology products and will now expand to include a larger pool of products.

"Lowering barriers to trade advances innovation and more importantly can expand the global economy," Rich Templeton, TI's chairman, president and CEO, said in a recent TI blog post. "We see this as a true win-win for the participating countries and a needed boost for rules-based trade under the World Trade Organization. President Obama and Ambassador Froman deserve a great deal of credit for this important breakthrough."

The agreement dates back to 1997, and since then exports of ICT products has grown from $1.2 trillion to more than $5 trillion, according to TI. With the expansion of the agreement, new products including multicomponent semiconductors, will be covered, saving the industry $150 to $300 million in global annual tariffs, according to an estimate from the Semiconductor Industry Association.

The agreement is expected to be confirmed in Geneva later this year, TI's post says.

Danielle covers technology, retail, restaurants and hospitality for the Dallas Business Journal. Subscribe to our new TechFlash email newsletter.