The World Trade Organisation (WTO) on Monday set up a panel to look into European Union customs procedures that the United States says hinder its exports to the 25-nation grouping. The three-man panel will have six months to come up with a ruling in the dispute, centred on US complaints that EU member states categorise imported goods differently, leading to variations in tariffs imposed on the same product. US officials say this creates problems for its farm produce and manufacturing exporters, especially small to mid-size businesses, who are less well-equipped than larger firms to track differences in tariff rates.
The EU insists that its harmonised customs rules ensure uniform treatment of imports across all member countries.
It argues that the United States has failed to produce any concrete examples of problems encountered by its exporters despite formally asking US companies to register any complaints they might have.
Washington has long voiced concern over the issue, but says the problem has been intensified with the expansion of the EU from 15 to 25 members in May last year, and that talks with Brussels had failed to produce a solution.
Establishment of the panel, automatic under WTO rules since it was the second time the United States had presented its request, was approved at a meeting of the 148-member organisation's Dispute Settlement Body.
It came as another, but much more far-reaching, transatlantic trade row appeared to be coming back onto the boil with a US decision to break off talks with the EU over support for civil aircraft makers.
The United States had earlier agreed to suspend a WTO case against EU launch aid for its Airbus company, rival of the US Boeing pending the outcome of the talks.
In another decision on Monday, the WTO set up a panel at the request of South Korea which says that Japanese import quotas in dried and seasoned edible seaweed violate open trading rules.