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From: rchampe@hubcap.UUCP (Richard Champeaux)
Newsgroups: comp.sys.amiga,comp.sys.atari.st,comp.sys.ibm.pc,comp.sys.mac,sci.electronics,comp.arch
Subject: Re: GATT declares U.S. - Japan chip pact illegal
Message-ID: <1259@hubcap.UUCP>
Date: 30 Mar 88 19:20:31 GMT
References: <2441@unicus.UUCP>
Organization: Clemson University, Clemson, SC
Lines: 62
Summary: If not this, then what should we do?

In article <2441@unicus.UUCP>, craig@unicus.UUCP (Craig D. Hubley) writes:
> 
> The price-fixing deal that the U.S. forced on Japan to keep its own chip
> manufacturers (TI and Micron) in business, that has forced chip prices to
> four times their level (here, at least!) of ten months ago, has been 
> declared illegal by GATT, the General Agreement on Trade and Tariffs,
> the international body governing world trade.  The gist of it is that
> the pact has forced chip prices up, and supplies down, in Europe and Canada.
> 
> If you work in computer or perhipheral manufacturing, software, retailing, or 
> are just a consumer, you should probably write your congresscritter right now
> in support of the ruling.  This pact is crippling all of these industries, as
> I'm sure I don't have to tell anyone.  In an election year, they may prove
> to be subject to pressure, especially *presidential candidates*.  Just how
> many high-tech votes are there ?  Not to mention, with code-cracking hackers
> and electronic photo-retouching and other high-tech sabotage, would you want
> them voting against you ?  Emphasize your campaign computer cracking skills.
> 1/2 :-)
> 
> Save the whales.  Scrap the pact.  Yay GATT.
> 
> 	Craig Hubley, Unicus Corporation, Toronto, Ont.

     Ok, I'm not an economic or political expert (or an expert of any kind :-)
but I think that even if this pact isn't the best solution, something has to
be done to protect US manufacturers, and I don't think that just scrapping
the pact is a solution.
     Japanese and other asian chip producers can currently produce chips at
prices significantly less than US producers, and US producers are having a
hard time competing.  This is just great for consumers and computer and 
perhipheral manufacturers, but if it keeps up, US chip producers will have to
move to something else or fold.  Many people I know say that the Japanese are
obviously doing something right, and if US producers can't do the same then
they should get out.  In my opinion, I think that the fact that the asian
countries have a much cheaper labor force is a significant factor.  US
producers obviously can't just cut their employees salaries in half, so some
would say that they should get out.  Ok, so we lose the IC industry, big deal.
In the southeast the textile industry (which is the south's major 
industry) is taking a beating from Korean imports.  If they can't compete,
let them fold.  Everyone knows that the US car manufactures are having touble
competing with Japanese imports and therefore make poorer quality cars.  Well,
if they can't hack it, they should get out too.  Asian computer and perhipheral
manufacturers are already beginning to overtake the market.  Bye bye US
manufacturers.  Hmmm, we seem to be running out of industries.  Oh well, as
long as we consumers are getting cheap products, no problem.  Ooops, we seem
to be losing jobs and can't afford these products anymore, how'd that happen?

     Also I seem to remember reading in NewsWeek that last spring, Japanese
companies were accused of dumping chips on the US market at prices lower
than it cost the companies to produce them.  The only reason that I've ever
heard for this kind of illegal activity is to eliminate compitition.  I've
also read that the Japanese economy and infrastructure is stacked highly
against imports, and that US imports that should be cheaper than Japanese
products end up being much more expensive by the time they get to the
comsumer.

I sorry I got up on my soapbox, but you should be grateful I didn't get into
my speech on taxes.


Rich Champeaux
Clemson University