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U.S. to launch WTO case against EU |
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By Kevin Bogardus
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Posted: 05/28/08 12:50 PM [ET] |
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Under pressure from high-technology companies, the Bush administration on Wednesday asked for formal World Trade Organization (WTO) consultations with the European Union (EU) over barriers to U.S. computers, printers, video cameras and other products. U.S. Trade Representative Susan Schwab announced the decision, which is the first step toward litigation in the WTO. She said the EU had unfairly placed higher duties on a number of tech products that should receive duty-free treatment under the Information Technology Agreement (ITA) signed more than a decade ago by both sides. The EU has argued that some high-tech products are not covered by the ITA. For example, it has imposed tariffs on computer monitors over a certain size, arguing that the primary function of the monitors is for use as a television, not a computer. “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,” Schwab said in announcing the U.S. move. Tech lobbyists for Apple, Hewlett-Packard and other tech companies have lobbied for the action. Key Democrats welcomed the request, but said the Bush administration should do more to enforce existing trade agreements. House Ways and Means Committee Chairman Charles Rangel (D-N.Y.) and House Trade subcommittee Chairman Sandy Levin (D-Mich.) in a joint statement said legislation was needed “to ensure a more assertive approach” for trade enforcement. They indicated their panel would consider such legislation in the coming months. Trade has been a divisive issue this year between the White House and congressional Democrats, who refused to allow a vote on a trade deal with Colombia. It has also played a prominent role in the presidential race. |