EU-imposed tariffs violated infotech pact – WTO

The World Trade Organization (WTO) on August 16 ruled that the European Union (EU) violated the Information Technology Agreement (ITA), following complaints filed by several countries. The complaints, which the Philippines “strongly endorsed," zeroed in on tariffs imposed by the EU on IT products from other countries. In a release Thursday, the Department of Foreign Affairs (DFA) said the WTO Dispute Settlement Body issued the ruling on August 16. “The Philippines had a strong interest in the case, being the 10th largest ITA supplier to the European Union, with the value of its exports to the EU standing at $5.4 billion. The Philippines therefore joined the case as a third party complainant in support of the main complaints of the United States, Japan, and Chinese Taipei," said Philippine Permanent Representative to the WTO Manuel Teehankee. The Philippines is a founding signatory to the ITA. According to the ruling, the WTO said the EU had imposed as much as 14 percent tariffs on flat panel displays and multifunctional printers and machines, which were supposed to carry zero duties under the ITA. The Philippine private sector, through the Semiconductors Association of the Philippines, strongly endorsed the complaints against the EU, the DFA said “The Panel Report has recommended that the EU correct its measures. It is expected to be adopted by the Dispute Settlement Body, if no appeal is taken by the EU," the release said. It added the EU could still appeal this ruling to the WTO Appellate Body. —VS, GMANews.TV