Brussels, 21/09/2007 (Agence Europe) - A new transatlantic trade quarrel could be about to break out: according to British Daily The Financial Times of 21 September, the United States is preparing to complain to the WTO about Community Customs duties imposed on imports of high technology products such as digital decoders and screens. Washington could be about to challenge the EU interpretation of the 1996 WTO Information Technology Agreement (ITA). The ITA, which came into effect in 1997 and was signed by 29 countries, which at that time had 90% of world hi-tech production, governs the trade in such products and sets a zero customs duty on some products used by companies and professionals. With some of these products, which were expensive and rare in 1996, now being found in everyday consumer goods, the EU is seeking to reclassify some products and impose an average 10% duty on them. The United States is challenging this.
The European Commission, reacting the same day, said that Washington's accusations that the reclassification of the products by the EU violated commitments under the ITA, were “unfounded”. “The EU fully respects the spirit of the ITA when classifying new technologies. The EU has offered to discuss with all ITA members options for the review of product scope, or classification. The US has declined to engage in any of these ITA processes,” the Commission says in a press release, before going on, “Using the WTO dispute settlement system to pursue US goals would be a highly regrettable step. There are specific review mechanisms foreseen in the ITA - and the option of a reassessment through the Doha talks is eminently possible. The EU has no intention of undermining the product coverage agreed in 1996 by ITA members through unilateral and unreciprocated concessions”. (eh)