US reaches tariff agreement with EU, Japan, South Korea and Taiwan

U.S. President George W. Bush said Wednesday the United States has reached agreement with the European Union, Japan, South Korea and Taiwan to eliminate tariffs on multi-chip integrated circuits _ the semiconductor devices used in computers, cell phones and other high-technology products.

U.S. companies are the world's principal suppliers of multi-chip integrated circuits, accounting for about half of the $4.2 billion (Ђ3.6 billion) in global sales of the devices last year, the White House said.

The agreement calls for zero duties on these products at an agreed upon date. The target date is Jan.1, 2006. Japan already applies zero duties on these products and expects to ratify the agreement in 2006, the White House said.

The agreement was announced here as Bush opened a weeklong Asian trip, AP reported. V.A.