US and Japan slam EU tariffs on IT

The EU is accused of reneging on the1996 Information Technology Agreement

The US and Japan have made a formal complaint to the World Trade Organisation (WTO) about EU import tariffs on some IT products.

The dispute concerns web-enabled set-top boxes, flat-panel LCD monitors and multifunction printer/scanner/fax devices.

The three product groups were estimated to have been worth $70bn in export sales in 2007.

The EU has signed up to the 1996 Information Technology Agreement (ITA) which outlaws tariffs on IT equipment between the signatories.

But the EU believes that the products are not covered by the ITA because they are consumer electronics, and has been imposing tariffs of between six and 14 per cent for the past 20 months.

The Office of the US Trade Representative has stated that no such exemption exists, and that the EU is reneging on the ITA.

The WTO has now been asked to launch formal 'consultation' with the US, Japan and EU in an effort to settle the dispute.

"It is critical that the European Union lives up to its ITA obligations instead of imposing new taxes and duties on innovative technologies," said US Trade Representative Susan C Schwab.

"The EU should be working with the US to promote new technologies, not finding protectionist gimmicks to apply new duties to these products."

If consultation fails to resolve the issue in 60 days the US can move to have the WTO rule against the EU tariffs.