International and Digital Trade
Intel advocates for free trade agreements that expand opportunities and promote economic growth.
Semiconductors have been one of the top U.S. exports for many years, and Intel is the largest U.S. semiconductor manufacturer and a world leader in computing innovation. Intel does about three-quarters of its advanced manufacturing and research and development (R&D) in the U.S. yet generates more than three-quarters of its revenue from outside the country.
Key Issues
International Trade
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. Such measures are counterproductive as they undermine competition and reduce global trade by more than $90 billion each year. These initiatives also undermine innovation and are especially harmful to the tech sector as it is based on a complex global supply chain.
Commercial Encryption
Robust encryption technology is necessary to protect digital devices and networks. The number and seriousness of cybersecurity attacks continue to grow. Regulatory barriers to the use of cryptography run the risk of decreasing the overall security of computing devices and the internet.
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. The U.S. government should make it a priority to remove these barriers to international trade.
Technology Mandates
FTAs should constrain governments from picking winners and losers. Technology mandates are only justified in very limited circumstances that deal with public health and safety; yet, as global competitiveness increases, attempts to require the use of domestic technologies to favor local companies are increasing as well.
ICT Tariffs
The U.S. government should continue to pursue an ambitious expansion of the zero-tariff WTO Information Technology Agreement, which benefits U.S. technology leaders the most.
Key Issues
Customs and Trade Facilitation
Multinational Oversight
Establish national and multilateral oversight, problem-solving, and consultation capabilities by supporting a fully functioning WTO.
FTA implementation
Build customs capacity in developing countries that enable the capability to operationalize all FTA’s many provisions and take advantage of associated trade benefits. Governments, non-governmental organizations (NGOs), and businesses should coordinate as needed to build the customs infrastructure for creating this capacity.
Digital Trade
Companies must navigate challenges from last-mile delivery logistics to secure cross-border payments. New data localization policies and other hurdles are emerging for international digital trade. Disruptive effects on business and the workforce will need to be navigated, while questions on taxing global digital activities are ongoing.
Cross-border Data Flows
Current WTO negotiations provide an opportunity to reach a global agreement on provisions that meaningfully combat barriers to data flows, including those affecting financial data to ensure a stable and robust global supply chain that benefits traders and consumers in every geography. Those provisions should not challenge regulatory frameworks that allow for the transparent and non-discriminatory transfer of data across borders.
Source Code, Algorithms, and Encryption Keys
Companies should not be required to disclose source code, algorithms, or encryption keys as a requirement for market access or entry. Innovation depends on the ability to develop and use proprietary software and to secure products and systems with private encryption keys.
Some economies have unfairly advantaged their domestic industry by demanding that foreign companies transfer source code, algorithms, or encryption keys as a condition for doing business in their territory. In other scenarios, concerns around government access to encrypted data have led to requirements that firms build “back doors” to digital products that can put intellectual property at risk.
WTO Moratorium on Customs Duties
Intel strongly supports extending and making permanent the WTO moratorium on customs duties. As a company that operates in over 50 countries around the world, it is critical that data can flow between teams without having to track and pay customs duties. Without this policy in place, it could be cost-prohibitive to operate in a location that assesses duties on digital transmissions.
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.
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Ideas and perspectives promoting a thriving innovation economy from Intel’s public policy team.