US targets EU over hi-tech goods

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The US has filed a complaint with the World Trade Organisation (WTO) over European tariffs on hi-tech items, saying they breach trade rules.

The US Information Technology Industry Council argues that such duties on information technology goods ended under an agreement dating back to 1996.

But the EU says it can charge tariffs on some items in this sector that have been developed since the agreement.

Items included in the complaint include printers and flat panel TVs.

"The EU is effectively taxing innovation," said US Trade Representative Susan Schwab.

"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."

The EU argues that products such as printers that can scan copy and fax and satellite boxes that can reach the internet can have duties imposed on them because they are new developments.

It said the "spirit and explicit provisions in the Information Technology Agreement make it clear that extension to new products to reflect technological change would not be automatic, but based on periodic review by signatories".

In response, John Neuffer, the Information Technology Industry Council's vice president for technology and trade, said the organisation was very concerned that an "extremely important trade agreement" would be eroded.

Members of the trade body include Apple, Cisco and Hewlett Packard.