The dispute concerns the 1996 Information Technology Agreement (ITA), a voluntary trade treaty signed by some 70 countries that set 0% tariffs on products such as computer screens and printers to foster trade in high-tech goods.
But the European Union refused to designate as high-tech three categories of electronic devices: television cable converter boxes that also deliver the Internet, flat panel computer screens and printers that scan, fax and copy.
The EU argued that added functionality since the agreement was reached in 1996 meant that some products were now consumer goods rather than information technology, and so were not entitled to the zero tariffs under the deal.
For instance, it said flat-panel computer displays could also now serve as television screens.
Brussels subsequently imposed duties ranging from 6 to 14% on the products, $11 billion of which the EU imported from all suppliers in 2007.
Criticising the WTO panel report, the Commission said it failed to lay down markers for future reform of duty rules governing soaring global trade in electronics products.
"The report does not establish general principles that would imply any form of generalised conclusions," the European Commission said in a statement. "No decision on a possible appeal to the WTO report is taken yet."
US and Asian electronics producers, including Hewlett Packard and Samsung Electronics, are keenly awaiting any sign that the EU might appeal the WTO panel's findings. The EU has 60 days to appeal.
The WTO panel's findings back claims by the United States, Japan and Taiwan that EU duties violate the ITA agreement.
Meanwhile, the US applauded the WTO panel ruling. US Trade Representative Ron Kirk said the decision should help guarantee duty-free access to the EU for three products - flat-panel computer monitors, multifunction printers and some set-top boxes for televisions.
"This ruling affirms the principle that changes in technology are not an excuse to apply new duties to products covered by the Information Technology Agreement," Kirk said in a statement.
(EurActiv with Reuters.)
