Washington: The World Trade Organisation (WTO) has ruled that a US Legislation, known as Byrd Amendment, fell foul of global trade practices.

In a preliminary ruling on July 17, the WTO said the amendment breaks international trade rules and should be repealed.

The US said it would appeal the ruling that declared illegal a US Law giving American companies fines collected from foreign firms they accused of unfair pricing.

The dispute with the European Union, Canada and nine other members of the 144-member WTO who lodged the complaint focuses mainly on steel.

The Byrd Amendment was signed into Law by former US President Bill Clinton in the autumn of 2000.

Many countries including India had filed formal disputes against the US move.

This peculiar gift to US companies had been devised by Senator Robert Byrd, West Virginia Democrat.

Because of its controversial nature, he secured passage of the provision in October 2000 by the backdoor, attaching it to the conference report of a $ 70 billion Agriculture Appropriation Bill.

PTI