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The U S -Japan Semiconductor Agreement: Keeping Up the ManagedTrade Agenda

Toggle open close INTRODUCTION At the insistence of the United States, in 1986 Japan agreed to limit its exports of semiconductors, mainly the dynamic random access memory (DRAM) chips, to America. These chips are used in high- tech consumer electronics equipment like computers and video cassette recorders. The agreement expires this July 1, and the Bush Administration thus soon must decide whether to renew it. Doing so would make Washington a hypocrite in its free trade efforts to open markets abroad for American products. The 1986 chip agreement, after all, restricts trade, ostensibly to help some American segments of the semiconductor industry. The agreement in fact has

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