The US was to file a complaint at the WTO yesterday over tariffs the EU imposed on computer monitors, cable converter boxes and printers, people familiar with the case said.
The US Trade Representative’s office plans to say the EU is undermining a decade-old agreement to eliminate duties worldwide on technology products by contending that some new items fall outside the scope of the accord, the people say. Japan is likely to join in the case, one person said.
The dispute concerns the 1996 Information Technology Agreement, which eliminates tariffs on high-tech products among the largest makers and consumers of electronic goods. The accord saves makers of those products US$5 billion a year, said the Consumer Electronics Association, a US industry group.
The initial case will involve three products, all developed after 1996, that the EU contends aren’t covered by the accord.
The EU says flat-panel computer monitors that show videos are TVs, not computer components, and so face 14 percent duties. It also says printers with other capabilities, such as faxing, aren’t the same as devices that print only and therefore face a 6 percent duty. Cable converter boxes with Internet access have also been categorized to face a duty.
US Trade Representative Susan Schwab scheduled a press conference yesterday to make an “announcement on the European Communities and the Information Technology Agreement,” her office said in a notice. Her spokesman, Sean Spicer, declined to comment.
Peter Power, a spokesman for the European Commission in Brussels, declined to comment until the complaint was filed.
The issue has been a long-standing complaint of US high-tech companies and has been picked up by lawmakers. In March last year, Democrats on the House Ways and Means Committee urged the US to file a WTO complaint, identifying it as one of the six main barriers to US exports. Schwab threatened to bring a complaint at the WTO during a speech to the CEA’s conference in January.
“If countries can pick and choose which parts of trade agreements they can live up to, it undermines the whole WTO process,” said Michael Maibach, president of the European-American Business Council. “It’s an issue of principle.”
The Japanese trade ministry was considering its options, Kenichiro Koreda, a spokesman at the WTO section of the Ministry of Economy, Trade and Industry, said by telephone. Filing a complaint is something the ministry has been considering “for some time,” he said, declining to elaborate.
South Korea in May last year began free-trade negotiations with the EU that include lowering tariffs on electronic products made in the country, its foreign ministry said. Suwon, South Korea-based Samsung Electronics Co is the world’s largest TV producer and second-biggest mobile-phone maker.
John Deng (鄧振中), Taiwan’s deputy minister of economic affairs, didn’t immediately return calls seeking comment.
Under WTO rules, the US has to first file a request for consultations at the Geneva-based organization, and then could ask for a three-judge panel to adjudicate the complaint after 60 days.
US officials are worried about the precedent the technology duties might set, industry groups said.
“This has the potential to unravel the entire agreement,” said E. Sage Chandler, senior director for international trade at the CEA.
The US already has cases pending against the EU over aid its governments have provided Airbus SAS and over restrictions on the sale of genetically modified foods there.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College
RSS