Semiconductor Trade Arrangement

The U.S.-Japan Semiconductor Trade Arrangement is a bilateral agreement
which came into effect on August 1, 1991, replacing the prior 1986
Semiconductor Trade Arrangement. The new Arrangement contains provisions
to: (a) increase foreign access to the Japanese semiconductor market and
(b) deter dumping of semiconductors by Japanese suppliers into the U.S.
market, as well as in third country markets. In evaluating market access
improvement, both governments agreed to pay particular attention to market
share. The expectation of a 20 percent foreign market share by the end of
1992 is included in the Arrangement. The Arrangement explicitly states,
however, that the 20 percent figure is not a guarantee, a ceiling, or a
floor on the foreign market share.