Global Trade Policy

Intel public policy: How Intel promotes innovation worldwide

Brooklyn Bridge into New York City

Intel is the world's largest semiconductor manufacturer and a world leader in computing innovation. Intel does about three quarters of its advanced manufacturing and R&D in the United States, yet generates more than three quarters of its revenue from outside the United States. Semiconductors have been one of the top U.S. exports for many years.

Intel strongly supports robust free trade agreements (FTAs), which open up foreign markets and level the playing field so that U.S. businesses can keep growing. America’s 20 existing FTA partners purchase nearly half of all U.S. manufactured goods exports, even though they account for less than 10% of the global economy. According to the Peterson Institute for International Economics, real incomes for Americans are 9% higher than they would have been due to more open trade. Jobs linked to exports pay, on average, 18% more than other jobs.

The U.S. government should negotiate more FTAs, conclude the Trans-Pacific Partnership Agreement and Transatlantic Trade and Investment Partnership, and enact Trade Promotion Authority. Well-crafted and consistently enforced FTAs minimize and remove trade barriers that can cripple U.S. businesses.

Key Issues

  • Prohibit forced 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.

  • Minimize commercial encryption regulation. Robust encryption technology is necessary to protect digital devices and networks. The number and seriousness of cybersecurity attacks continues to grow. Regulatory barriers to the use of cryptography run the risk of decreasing the overall security of computing devices and the internet.

  • Prohibit technology transfer requirements. 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.

  • Minimize requirements to use specific technologies. 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.

  • Eliminate all Information and Communication Technologies (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.