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U.S., China Planning New Hi-Tech Tariff Cut Agreement

U.S., China Planning New Hi-Tech Tariff Cut Agreement

Los Angeles, CA – The U.S. and China have reached an “understanding” on a deal that would eliminate more than 200 tariffs on certain high-tech goods.

Speaking with the media at the current Asia Pacific Economic Cooperation (APEC) conference in Beijing, U.S. officials said that the quasi-agreement is yet to be finalized in detail.

They did say, however, that an agreement would include the phased-out removal of tariffs on such goods as medical devices, global positioning systems, computer software, and video game consoles.

No specific timeline was given on finalizing a broader agreement, which would have to be vetted by the World Trade Organization.

Talks on a proposed hi-tech trade deal collapsed last summer due to disagreements over what products would be covered by an expanded agreement. A finalized deal would mark the first major tariff reduction agreement by the WTO in 17 years.

According to the Office of the U.S. Trade Representative (USTR), a new agreement would affect $4 trillion in annual trade and dismantle a tariff system that adds as much as 25 percent to the cost of imported high-tech products sold in the U.S.

“We already export over $2 billion of high-tech, high-end semiconductors, even with 25 percent tariffs,” said USTR Michael Froman. “Eliminating those tariffs will obviously expand that trade significantly. It’s an area where we have a comparative advantage, and where we can support a lot of good, well-paying American jobs.”


Cadence Inc. Acquires Plainfield Precision Units

Staunton, VA – Contract manufacturer Cadence Inc. has acquired three operating business units of Plainfield Precision Holdings.

The operating units are Plainfield Precision – Sturgeon Bay, Wisconsin; Plainfield Precision – Plymouth, Massachusetts; and Plainfield Precision – Santo Domingo, Dominican Republic.

Cadence is a leading contract manufacturer and maker of complex components and sub-assemblies for medical device and life sciences companies, while Plainfield Precision Holdings is a highly specialized solutions provider of assembled products that integrate stamped metal and molded plastic components.

The acquisition, said Cadence, “firmly positions Cadence within the top global providers of technologies and services used in advanced surgical products, while Plainfield Precision Holding’s unique portfolio provides key building blocks for our supply chain integration strategy,” said Alan Connor, Cadence CEO.

“Our customers are increasingly looking to more strategic partners to fulfill their supply chain requirements. With our broad base of capabilities, including plastics and metals, Cadence is well positioned to meet these evolving contract manufacturing needs,” he added.

Financial details of the acquisitions were not disclosed.