EU blocks WTO investigation into high-tech tariffs

GENEVA, Aug 29 (Reuters) - The European Union on Friday blocked a World Trade Organisation (WTO) investigation of its duties on high-tech imported goods such as satellite boxes, flat-panel computer monitors, and digital scanners and printers.

Washington asked for a WTO panel to examine the tariffs Brussels imposes on products the United States believes should get duty-free treatment under the Information Technology Agreement reached in 1996.

The EU invoked its right to block that first-time request for a panel, as is permitted under WTO rules. If the United States submits a second request at the next Dispute Settlement Body meeting on Sept. 23 the panel will be set up automatically.

In a statement, Brussels said the products listed in the U.S.-brought dispute were new and "objectively different" from the categories of high-tech goods enumerated in the 1996 accord.

It argued that amendments to that list should be negotiated amongst the accord's 71 signatories, not through WTO litigation.

Washington estimates that worldwide exports of the products covered by the dispute, made by companies like Hewlett-Packard and Canon <7751.T>, total more than $70 billion.

Japan and Taiwan are supporting the U.S. panel request, and other electronics exporters such as China, Singapore, Thailand, and the Philippines have also shown interest in the dispute.