06 December 2001
Cisco President and CEO John Chambers on Trade Promotion Authority Passage in the US House of Representatives:

"Trade negotiating authority for the President strengthens U.S. economic
leadership and is essential to keeping U.S. industry at the cutting edge of the
global information revolution. I commend President Bush, Speaker Hastert, and all those members who supported this legislation, and look forward to favorable consideration by the Senate."

International trade is a key contributor to the overall economic health and growth of the United States and countries around the world. It boosts living standards, creates jobs and increased opportunities for workers, and expands consumer choice.

• Reduced trade barriers, both tariff and non-tariff, are crucial to the expansion and growth of the global economy.
• Trade is an economic equalizer among nations. It raises all boats and economic benefit accrues to all participants.
• Cisco is a global company that exports almost half of its production worldwide.

Trade and regulatory requirements in Latin America, Europe, and Asia have significant implications for Cisco's ability to function as a multinational corporation that actively promotes the growth of the gloabal networked economy. Liberal trade and investment policies create a win-win situation for national economies, companies, and citizens.

"An open and liberal trading system is the cornerstone of a healthy global economy and is vital for continued technological development and advancement. Cisco is committed to supporting policy initiatives -- such as Fast-Track and the Information Technology Agreement--that grow the global pie, rather than shrink it."

Rick Justice
Senior Vice President, Worldwide Sales and Operations

The continued expansion of the Internet and growth of Internet commerce is crucial to the future development and viability of the globally networked business. While governments will act to regulate Internet commerce to some degree, two things are clear:

• the Internet should remain a "free trade zone" to the greatest extent possible, unhindered by excessive regulation; and
• the private sector should play the primary role in shaping the electronic commercial environment.

The U.S. government has, to date, espoused a "hands-off" policy and is working through international fora to encourage other governments to pursue similar policies.

The private sector must continue to be a vocal advocate of minimal regulation for Internet commerce and to work cooperatively with governments to craft effective strategies that accommodate technological innovation and market development as well as addressing regulatory concerns.

"Cisco closed FY'00 with an 90% run-rate for electronic orders, up from 80% a year ago. Today, we process over $1 billion a month in online orders, making CCO one of the largest e-commerce sites in the world. Most analysts predict that worldwide e-commerce will reach $1.1 trillion by 2002. I believe that e-commerce results will be much larger than this."

John Chambers
President and CEO