Cisco Systems Inc

Under pressure from the United States and Asia, the European Union proposed Monday to eliminate taxes on imports of newly developed high-tech goods in the hope of avoiding a lengthy and costly World Trade Organization dispute.

Brussels said it wants to "update and expand" a 1996 WTO agreement that ended tariffs on information technology equipment by granting the special treatment to new products that have entered the market since the accord went into effect.

The U.S. says these new products are already covered by the deal, and charges the 27-nation bloc with breaking the rules.

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The United States filed a complaint Wednesday with the World Trade Organization over European tariffs on three categories of high-tech goods, including flat-panel computer monitors and some printers.

The duties, which are as high as 14 percent, make U.S. exports less competitive in the European Union, according to the Information Technology Industry Council, a trade association. The group's members include Hewlett-Packard Co., Apple Inc. and Cisco Systems Inc.