The United States, Japan, and Taiwan have asked the World Trade Organization (WTO) to settle their dispute against the European Union (EU) over its duties on certain high-technology imports, U.S. Trade Representative (USTR) Susan Schwab said Monday. The three allies contend that the EU is violating WTO rules by imposing duties on imports of certain products like cable boxes that can access the internet, flat-panel computer monitors, and certain computer printers that can also scan, fax, and copy. A WTO Information Technology Agreement (ITA) signed in 1996 prohibits duties on certain high-technology products, whose 2007 export values the USTR office estimated at over $70 billion. “The EU committed to bind and eliminate duties in ITA products in its WTO tariff schedules. We believe that these duties are inconsistent with the EU's commitments on these products, and that they discourage technological innovation in the IT (information technology) sector,” Schwab said. “However, 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,” Schwab said. “In effect, the EU is taxing innovation—a move that could impair continued technological development in the information-technology industry and raise prices for millions of businesses and consumers.” The WTO dispute-settlement body will consider the joint request at its next meeting on August 29, the USTR office said.
