In this corner weighing in at many billions of euros we have the EU… In the other corner — backed by an anemic dollar and a slightly stronger yen we have the tag-team duo of the US and Japan…
Let’s hope there is a nice and easy solution to the brewing tech trade skirmish taking place between the US and EU authorities. The EU is placing duties as high as 14% on printers and some flat panel monitors.
The US says these duties violate the terms of a 1996 WTO agreement. What is interesting is that Japan has also complained regarding the same issue.
The EU said that the flat-panel screens cited by the U.S., for example, are capable of working with DVD players, not just computers, and are therefore properly classified as video monitors, which are not covered by the ITA [Information Trade Agreement].
The EU further says it wants to renegotiate the agreement but the US has been unresponsive.
Let’s hope this issue can be resolved amicably and that a fair resolution can reached which satisfies all parties.
Personally I believe tariffs of products are never good and always lead to dislocations in economic markets which is ultimately terrible for consumers.