EU kills tax on hi-tech gear

THE EU IS to kill taxes on imports of newly-developed high-tech goods in the hope of avoiding a lengthy and costly World Trade Organisation dispute.

Currently, the EU has huge taxes on flat-panel computer monitors, cable and satellite boxes that can access the Internet, and printers that can also scan, fax and copy.

In 1996, WTO members agreed to end tariffs on information technology equipment but the row has blown up as to whether new products that have entered the market since the accord went into effect are covered.

However the United States claims that these new products are already covered by the deal, and claims that the EU has been breaking the agreement.

Now the EU said in a statement that negotiations would solve disagreements " within a matter a months, not years" and has asked other countries not to go to court over this.

It's a compromise has not satisfied the Americans who feel that what the EU offering now will not resolve anything.

That is because the EU is allowing negotiation for new products on the list but not accepting that the list covers new tech gear already. The US does not want to have to come back in a few years time because the EU does not think a new bit of technology is covered.

The duties, which are as high as 14 per cent, apparently make U.S. exports less competitive in the European Union. µ

L'Inq
AP