WTO Favors U.S. on EU Computer Tariffs

The World Trade Organization has ruled in favor of the U.S. in a dispute over tariffs imposed by the EU, Britain and Ireland on U.S. computer networking equipment exports, a senior U.S. trade official said. “We are pleased the WTO panel has ruled these tariffs clearly violate WTO obligations,” U.S. Trade Representative Charlene Barshefsky said in a statement. The ruling means San Jose-based Cisco Systems Inc. and Santa Clara-based Bay Networks Inc. as well as Cabletron Systems, based in New Hampshire, will be able to sell their products at lower prices in the lucrative European market. “The U.S. computer networking industry came to us after their exports were arbitrarily reclassified in the EU, almost doubling the tariffs,” Barshefsky said. “The EU tariffs affect billions of dollars in U.S. exports.” The EU market for such equipment totals over $5 billion annually, and U.S. companies account for more than half the market, she said.