US to raise duties on EU foods in rice fight

The US intends to place higher import duties from March 1st on a range of European Union foods in retaliation for higher EU tariffs…

The US intends to place higher import duties from March 1st on a range of European Union foods in retaliation for higher EU tariffs on American rice, the Bush administration said today.

The US Trade Representative's office said higher duties on about $33 million worth of EU goods could be imposed annually.

Among the items that could be targeted are EU yogurt, processed cheese, citrus products, olives, artichokes and peaches, according to USTR.

Last September, the EU raised tariffs on brown rice imports above a previously agreed level.

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USTR has argued that the higher tariffs unfairly limit access for US rice farmers for exports valued at about $33 million annually. "Since we have not resolved this problem through negotiations, we have to notify the WTO (World Trade Organization) of our intent to exercise our rights," US Trade Representative Mr Robert Zoellick said in a statement.

The higher US tariffs would be on foods the EU is a dominant supplier of in the United States, USTR said.