WTO Case Against EU Duties on High-Tech Products Advances

(World Trade Interactive)

A World Trade Organization case against the European Union’s tariffs on certain information technology products moved forward this week when the U.S., Japan and Taiwan requested that the WTO establish a dispute settlement panel to examine the matter. The Office of the U.S. Trade Representative reports that the three countries took this step after consultations with the EU in June and July failed to resolve the dispute. The panel request will be taken up by the WTO Dispute Settlement Body at its next meeting Aug. 29.

The U.S. case alleges that the EU has violated its obligations under the WTO’s Information Technology Agreement by imposing new duties on cable boxes that can access the Internet, flat-panel computer monitors and certain computer printers that can also scan, fax and/or copy. The U.S. believes these products are covered under the ITA and should therefore receive duty-free treatment when imported into the EU. However, the USTR states, the EU “claims it can now charge duties on these products simply because they incorporate technologies or features that did not exist when the ITA was concluded.” This approach threatens to “impair continued technological development in the information technology industry and raise prices for millions of businesses and consumers,” the USTR adds.