WTO to set up dispute settlement panel for EU-Japan IT tariff case+

TOKYO, Sept. 22 Kyodo - The Geneva-based World Trade Organization will likely set up a dispute settlement panel as early as Tuesday to determine whether EU tariffs on some information technology products are unfairly high, in response to a request from Japan, the United States and Taiwan, trade sources said Monday.

The panel is expected to be established as the European Union failed to find
common ground with Japan, the United States and Taiwan on the interpretation of
the WTO's Information Technology Agreement, under which duties on high-tech
products connected to computers should be completely eliminated apart from some
limited exceptions, the sources said.
In May, Japan took legal action against the European Union for the first time
under WTO rules, alleging that EU tariffs on multi-function printers,
flat-panel computer monitors and cable television converters violate the 1996
agreement.
The European Union currently imposes a tariff of 6 percent on printers with
additional capabilities, such as copying, faxing and scanning, as it regards
them as copiers, which are outside the scope of the agreement.
The European Union has also stated that new IT products or functions should not
be covered by the agreement.
But Japan, the United States and Taiwan argue that multi-functional printers
should be regarded as IT products as they can be accessed by personal
computers.
Japanese officials have argued that such up-to-date printers were not in the
market when the accord was signed in 1996 but it is obvious that they are used
as printers rather than copy machines.
After establishment of the dispute settlement panel, the whole legal process is
expected to continue for about one year.
Strong requests from the three economies' high-tech industries prompted their
officials to address the issue.
The trade value of multi-functional printers exported by Japanese makers to the
27-nation European bloc in 2006 amounted to about 295 billion yen, according to
the Ministry of Economy, Trade and Industry.
The European Union levies a 14-percent duty on computer displays, arguing that
they now also have electric-appliance functions, such as showing videos and
television programs.
As for cable television converters, Brussels treats them as video players and
imposes a tariff of 13.9 percent.
Japanese firms hardly export these two products, but the United States and
Taiwan have a strong interest in the tariffs imposed on them, according to the
ministry.