WASHINGTON. Nov 10: The United States, raising the stakes in its row with the European Union over trade in bananas. today plans to publish a list of European products that could be hit with US sanctions, says AFP.

The sanctions would likely take effect in February or March if the European Union refuses to change its policy on banana imports, according to Jay Ziegler, spokesman for the office ofthe US Trade Representative (USTR).

He said the list could cover Europeans exports to the United States worth one billion dollars. the amount of money US banana exporters say they lose every year because of discriminatory EU import policies.

The United States maintains that privileges accorded by the European Union to banana growing countries in the 71-nations African. Caribbean and Pacific group — many of them former British or French colonies — harm the interests of Latin American and US banana

exporters.

The United States In 1996 took its complaint to the world trade organization, which last year ruled that the EU banana import regime was discriminatory.

While the EU has since tried to change its policies to conform to WTO regulations, the proposed modifications — the latest of which were put forward October 28 — have been found wanting by Washington.

The problem we have here is not the United States'" Ziegler argued. "The problem here is that the European Union has quite deliberately failed to meet its international trade obligations."

He said US Agriculture Secretary Daniel Glickman and Trade Representative Charlene Barshefsky had urged EU counterparts "to enter a constructive dialogue'" on the dispute.

"But the EU has consistently avoided It now they have proposed ideas which only nibble on Ilie margins. But the bottom line is that there is very little time left and words cannot

substitute for action."

Ziegler said the sanctions would take effect February 1. although the date could be pushed back a month if the European Union questions the US damage calculations.

Earlier Monday and EU spokesman warned Washington that US sanctions on European products could "undermine trans-Atlantic relations."

The intensification in the banana dispute comes at a delicate moment in US-European trade relations, with the United States making clear its desire to see the European Union boost growth and absorb more exports from struggling economies in Asia.

There’s got to be a balance and there's a certain fairness that one has to be concerned about." US Commerce Secretary William Daley said on Monday.

'"if the general populace believes that it's not fair, that it's not a fair game, than in the long run we ll all suffer and protectionist actions will get more support.”