US and Japan File WTO Case Against EU for Violations of Key Trade Agreement

• 5.30.2008

On May 28, the United States filed a consultation request with the World Trade Organization (WTO) regarding alleged violations by the European Union (EU) of core international commitments on high-tech trade. US Trade Representative Ambassador Susan Schwab announced the action in Washington. Japan announced that it was also filing a consultation request on the same day.

The EU has assessed import duties on three key high-tech products (flat-screen computer monitors, set-top boxes and multi-function printers) and threatened others. Under the WTO’s Information Technology Agreement – a landmark trade agreement negotiated in 1996 to promote the development and uptake of information technology products – participating governments are obligated to provide duty-free treatment to these and many other products.

The Information Technology Industry Council (ITI) has led the effort on behalf of the high-tech industry on this matter and is represented by WilmerHale.

The parties have 60 days to consult, after which a WTO dispute settlement could be established to resolve the dispute.