The trade dispute between the European Union and the US over the Foreign Sales Corporations (FSC) has been resolved, saving fresh produce from becoming embroiled in a trade war between the two trading blocs.

The EU was set to impose retaliatory duties of an additional 14 per cent on a range of products from the US, following a World Trade Organisation ruling in its favour.

This would have hit US produce such as asparagus, peaches, nectarines and plums.

But the US successfully repealed the remaining non-compliant elements of the FSC legislation on May 11.

The EU has now adopted a new regulation which stops the introduction of the additional import duty. The additional duty will not be applied, even for an interim period.

The regulation specifies a suspension of retaliation until May 29. This is the date by which the US must adopt the new measures.

It would take the US Resident’s active veto for the measures not to be passed. But the Department of Trade and Industry says that there is no suggestion that this could happen.