United States Wins WTO Dispute with EU on High-Tech Products

United States Trade Representative Ron Kirk announced that a World Trade Organization (WTO) dispute settlement panel upheld the US claim that the European Union (EU) violated its WTO tariff commitments by imposing duties as high as 14% on three high-tech products. For all three products at issue - flat panel computer monitors, multifunction printers, and certain cable, satellite, and other set-top boxes - the Panel concluded that the EU tariffs were inconsistent with its obligations.

The report helps ensure that U.S. producers of high-tech products will continue to be able to export those products to Europe duty-free as guaranteed by commitments made by the European Union following the WTO Information Technology Agreement (ITA). These products were included in the WTO's ITA, a major achievement of the post-Uruguay Round WTO that resulted in the elimination of duties on a wide range of high-tech products that Americans use every day, such as computers, peripherals, and telecommunications products. The EU claimed it could charge duties on them simply because they incorporate newer technologies or additional features. 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.