Business advocates are warning that provisions in the House and Senate tax bills aimed at discouraging offshore migration of multinational operations could trigger trade disputes and retaliation by trading partners because they conflict with tax treaties.

The Semiconductor Industry Association, representing big chipmakers such as Intel Corp., Texas Instruments Inc. and Qualcomm Inc., told Republican leaders in a Dec. 5 letter that it has trade-related concerns about two House and Senate proposals that target multinationals’ payments to foreign affiliates, including payments for parts and other goods used in manufacturing, royalties, interest and management fees.

“We note that both proposals may be inconsistent with U.S. tax treaty obligations,” SIA President John Neuffer said in the letter to Senate Majority Leader Mitch McConnell, Speaker Paul D. Ryan and the chairmen of both tax-writing committees.

Tax experts say the proposals could conflict with bilateral tax treaties that protect the deductibility of certain intercompany payments and establish a government-to-government mutual assistance program, or MAP, aimed at resolving company complaints of double taxation.

Lawmakers are trying to address a practice by which companies can claim deductions from U.S. taxes for the payments and simultaneously book the income in a country where the tax rate is lower.