EU loses hi-tech case at WTO

World trade body orders removal of EU import tariffs on electronics.

The World Trade Organization has ordered the European Union to drop import tariffs on three kinds of electronics devices following a complaint brought in 2008 by the United States, Japan and Taiwan. In a ruling on Monday (16 August), a WTO panel said that the tariffs violated the WTO’s Information Technology Agreement, which eliminates import duties on high-tech goods.

The EU maintains tariffs on flat-panel displays, multi-function printers and television set-top boxes, saying that added functionality – which, for example, allows computer displays to be used as television sets – made them consumer goods rather than high-tech devices.

Ron Kirk, the US trade representative, welcomed the WTO decision as “an important victory for US technology manufacturers and workers”.

“This ruling affirms the principle that changes in technology are not an excuse to apply new duties to products covered by the Information Technology Agreement,” he said.

The European Commission wants to renegotiate the Information Technology Agreement, but it is not clear whether that is going to be acceptable to its trade partners.

The parties have 60 days to appeal against the ruling.