THE World Trade Organisation (WTO) has authorised the European Union and other leading trade partners to impose sanctions against the United States in response to illegal anti-dumping rules.

EU Trade Commission Pascal Lamy welcomed the ruling, saying: "This was as we expected."

The EU and other complainants will be authorised to fine the United States up to 72 per cent of money collected under a US antidumping law known as the Byrd Amendment.

However, Mr Lamy said the 25-nation EU had not yet decided whether to impose the sanctions.

He said: "This is a decision that still has to be taken."

The EU may prefer to use the threat of sanctions to force the US to repeal the legislation more quickly or to obtain concessions in other trade negotiations.

Named after its sponsor, US Senator Robert Byrd, the three-year-old amendment allows the US to give American companies money collected in fines against foreign exporters whohave been judged to be selling products in the US at artificially low prices.

The WTO ruled two years ago that the measure illegal, supporting claims that it punishes exporters to the US twice, because first they are fined and then those fines were passed on to their competitors.