Washington: The United States has said it would appeal a World Trade Organisation (WTO) decision calling its measures, of maintaining tariffs to protect its steel industry, as illegal.

"Where the (WTO) panel found against the United States, we disagree, and we will appeal," US Trade Representative spokesman said in Geneva after the WTO decision was announced.

"In the meantime, the steel safeguard measures will remain in place."

The spokesman said that the so-called "safeguard measures" to protect an industry under certain conditions are allowed under WTO rules. "Many countries have used them. We believe the steel safeguard measures comply with our international obligations."

"In accordance with US law and WTO rules, the safeguard is a temporary measure, designed to help domestic producers adjust to import competition."

The statement noted that the tariff levels are being gradually decreased, and that over 1,000 waivers have been granted to foreign producers to ease the impact as US firms adapt.

On July 11, a panel of three independent experts at the WTO rejected the arguments laid down by the US that its safeguard measures were needed because of increased steel imports that were hurting its domestic steel producers.

The European Union filed the complaint last year and was joined by Brazil, China, Japan, New Zealand, Norway, South Korea and Switzerland.

Agencies