US and EU square off on tech trade

The US is accusing the EU of violating trade laws

The US is at odds with the European Union over the issue of tariffs within the tech sector.

America is accusing the EU of violating international trade laws by placing tariffs on certain products deemed duty-free by the World Trade Organisation (WTO).

US Trade Representative Susan Schwab claims that the EU has violated the WTO's Information Technology Agreement, which relieves IT products of import tariffs, by placing tariffs on flat-panel monitors, printer/fax machines and internet-ready cable boxes.

Schwab estimates that the tariffs will unfairly cut into the $70bn industry within the US.

The US is not alone in its concerns. Japan and Taipei have also joined in the complaint against the EU.

"The EU committed to bind and eliminate duties on ITA products in its WTO tariff schedules," said Schwab.

"We believe that these duties are inconsistent with the EU's commitments on these products, and that they discourage technological innovation in the IT sector."

The WTO is set to hear the dispute on 29 August.