“The United States filed a complaint Wednesday with the World Trade Organization over European tariffs on three categories of high-tech goods, including flat-panel computer monitors and some printers,” The Associated Press reports.
“The duties, which are as high as 14 percent, make U.S. exports less competitive in the European Union, according to the Information Technology Industry Council, a trade association. The group’s members include Hewlett-Packard Co., Apple Inc. and Cisco Systems Inc.,” AP reports.
“The complaint, strongly supported by the U.S. high-tech industry, charges that the EU’s duties violate a 1996 WTO agreement that eliminated tariffs on information technology equipment,” AP reports. “‘The EU is effectively taxing innovation,’ U.S. Trade Representative Susan Schwab said. ‘We wanted to make sure that the commitments to give duty-free treatment to these products would be maintained in the face of the evolution of technology.'”
“The EU has said it can charge duties on the goods, which include cable and satellite boxes that can access the Internet and printers that can also scan, fax and copy, because they include new technologies developed since the agreement was signed,” AP reports.
“The issue has also caught the eye of Congress. Almost 50 members of Congress, including Rep. Charles Rangel, chairman of the House Ways and Means Committee, urged the administration to file a case against the WTO in a May 21 letter,” AP reports.
“U.S. trade officials raised their concerns about the EU’s tariffs several times with European officials in the past 20 months, the U.S. Trade Representative’s office said, to no avail,” AP reports. “Japan has also filed a complaint against the EU on the same issue, the USTR said.”
Full article here.
Information Technology Industry Council’s press release verbatim:
High-tech industry backs WTO case against EU for flagrant violations of key trade agreement
The Information Technology Industry Council (ITI) today applauded the U.S. Government’s decision to initiate WTO consultations with the European Union (EU) for violating its trade commitments on high-tech products. The action was announced this morning in Washington by U.S. Trade Representative Ambassador Susan Schwab. With this, the U.S. and EU have 60 days to consult, after which a WTO panel could be established to resolve this dispute.
“This case is about the EU’s systematic failure to live up to its nternational obligations,” said Rhett Dawson, President of ITI. “The EU’s willful disregard of its commitments harms America’s innovative high-tech firms and their workers, who face an uneven playing field in Europe because of the arbitrary tariffs. We appreciate Ambassador Schwab’s resolve to enforce U.S. trade agreements and look forward to the EU coming into compliance.”
ITI has led the effort within the high-tech industry to persuade the EU to stop imposing these arbitrary and onerous tariffs, which are contrary to its obligations under the WTO Information Technology Agreement (ITA). John Neuffer, ITI’s Vice President for Technology and Trade, said, “It’s very clear that all the products getting taxed with duties as high as 14 percent are supposed to be entering Europe tariff-free under the ITA.”
“The EU is violating the letter and spirit of the ITA, which has been the most successful, pro-innovation and pro-growth agreement of the past decade,” Neuffer said. “The EU is taxing innovation by removing products from the ITA’s zero-tariff status simply because companies have found ways to improve them for businesses and consumers. The architects of the ITA crafted a visionary agreement intended to promote innovation; indeed, the agreement was expressly designed to encourage innovation, not punish it.”
“While no one wants litigation, the ITA’s integrity needs to be maintained. The EU has given no indication—despite repeated entreaties over many years—that it will abide by its commitments,” Neuffer said.
Products subject to the high tariffs are flat-screen computer monitors, set-top boxes (cable and satellite boxes), and printers with multi-function capabilities. Concluded in 1996, the ITA has 71 signatories, including the United States, the EU, Japan and China.
ITI member companies include Accenture, Adobe, Agilent Technologies, AMD, Apple, Applied Materials, Canon U.S.A., Cisco, ca, Corning, Dell, Eastman Kodak, eBay, EMC, Ericsson, Hewlett-Packard, IBM, Intel, Intuit, Lenovo, Lexmark, Micron, Microsoft, Monster, National Semiconductor, NetApp, NCR, Oracle, Panasonic, SAP, Sony Electronics, Sun Microsystems, Symbol Technologies, Tektronix, Texas Instruments, Time Warner, Unisys, Verisign and Vonage.
Source: ITI
[UPDATE:10:59am EDT: Revised headline as per reader feedback below.]
I hope that’s not truly verbatim, as there are typos.
I am glad to see the WTO agreements that are destroying the U.S. economy are biting somebody else in the butt for a change.
just my $0.02
“the WTO agreements that are destroying the U.S. economy”
Yeah, <u>that’s</u> the reason.
The US filed the complaint, not the companies.
True, M Kantor.
The headline is incorrect.
It should read, “Apple, other US firms back US complaint with WTO against EU tariffs on tech products”.
Ampar & M Kantor, MDN doesn’t let a few words get in the way of a headline.
Why would the EU ever comply with a WTO ruling?
As a Canadian, I know the USA never complies with WTO rulings. They just use the WTO rulings as a basis for negotiations with the abused countries they have fusked over.
The USA forces an agreement that still defies the WTO ruling and buys votes in the American heartland.
I hope those protectionist bastards in the EU gives the USA some of it’s own medicine.
You’re absolutely right about the US treatment of Canadian trade. But, didn’t your momma ever teach you what two wrongs don’t make?
Kate
P.S. I am about as pro-American as they come, but perfectly willing to admit when we’ve wronged a friend.
When in doubt, I always like to blame France. It’s just fun.
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So set up R&D;facilities in Europe, or use this as a bargaining chip to get the US to reduce it’s trade tariffs in other areas.
This is so not Mac-related. Let the politicians and bean-counters get the ulcers, not you.
When in doubt, I always like to blame France. It’s just fun.
And also one of the few examples of where multiple countries can agree.
@HMCIV
And it is getting very tired.
Let’s first have the $ v. other currencies change fixed! Then speek about taxes…
Don’t you know that for Apple and many other american manufacturers 1$ equals 1€?
The headline is <strike>incorrect</strike> correct.
Thanks, MDN.
Almost right Frenchie! While 1 $ is 0.64 €… Makes quite more then 14% difference allready!
@HMCIV
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It’s also fun to remember that US found independance thanks to France…
Why don’t we sick the Norwegian Ombudsman on the case? These tariffs harm the European consumer, yes?
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