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#1
31-05-2008, 12:03 AM
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US complains over EU tariff on DVRs
US complains over EU tariff on DVRs
The US government has complained to the World Trade Organisation in a dispute with the European Union involving tariffs on set-top boxes. The EU has introduced tariffs on STBs with hard disks as it says they fall outside the definition of an STB in an existing trade agreement. They are instead being classified as video recorders. The US believes that the 1996 Information Technology Agreement should cover products such as cable and satellite STBs, flat panel monitors and printers/scanners/copiers even when their specifications have changed dramatically. "The EU should be working with the United States to promote new technologies, not finding protectionist gimmicks to apply new duties to these products," said trade representative Susan Schwab. The EU said it was correct to base its classifications "exclusively on the objective characteristics of the products" and called for the US to enter a renegotiation of the ITA. "Where changes in technology have given a product multiple functions... then these products in many cases are objectively different products falling outside of the original product categories covered by the ITA and are classified as such by the EU and others," said a statement. "The EU has said it is willing to negotiate with all other ITA members. The US is not willing to do this. Why not  "The WTO will now manage a formal consultation between the US and EU. If the dispute is not resolved the US can call on the WTO to decide whether the EU is breaking its obligations.
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