The US intends to raise tariffs on European fruit and vegetables in retaliation for higher EU tariffs on American brown rice. Tariffs will also be upped on cheese and spices.
The EU consumes $33 million worth of US-grown brown rice a year, making the continent the biggest customer for the product.
In September, the EU raised tariffs above the rate it had agreed to in the Uruguay Round of trade liberalization negotiations. A US rice industry group said the tariff of 65 euros a metric ton would have been between zero to 15 euros a ton under the old system.
The US said it is invoking World Trade Organisation rules because the new EU rice import system unfairly limits US rice farmers' access to European markets.
"We have been trying for months to find a fair resolution that balances the concerns of both sides," US trade representative Robert Zoellick said in a statement. "Since we have not resolved this problem through negotiations, we have to notify the WTO of our intent to exercise our rights to withdraw concessions."
WTO rules require any member that withdraws a trade concession to negotiate benefits that will compensate an affected trading partner. If agreement can't be reached, affected countries may raise tariffs on imports of similar value.
A list of more than 15 products that will potentially be targeted was handed to the WTO by the US on Friday. It includes clementines, peaches and Brussels sprouts, which would be subjected to similar tariff hikes if the US carries out its threat.
The US intends to impose the new tariffs on March 1. Friday's announcement represented the beginning of the required 30-day notice.
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