World Trade Organisation (WTO) experts ruled against the United States yesterday in a long- running row with the European Union (EU) over special US duties on carbon steel products from Britain and Spain.

The three-man team also recommended that the 148-nation WTO's dispute settlement body call on Washington to come into line over the issue.

The experts, sitting as a compliance panel, found that US amendments to the way Washington applied the duties to British and Spanish products after losing an earlier case brought by the EU did not comply fully with WTO rules.

But they found that the US methods of assessing new duties on carbon steel flat products from France were in order.

The case dates back to when the EU challenged the United States in the WTO over duties Washington imposed on carbon steel goods to make up for what it argued were effective continuing subsidies to former state-owned steel firms in Europe.

A dispute panel and appeals judges in 2002 and 2003 found largely in favour of the EU complaint, which was backed by Brazil, and US officials said they would implement the recommended changes.

But last year Brussels said changes in the application of the US duties still violated WTO rules, and won agreement from other WTO members to set up the compliance panel.