Geneva: A World Trade Organisation (WTO) report published in Geneva has ruled against the United States over tariffs imposed on European steel imports.

The report by an expert panel concerns US measures against privatised European steel companies from Britain, France, Germany, Italy, Spain and Switzerland that were imposed gradually between 1987 and 1998. Washington claims these companies received unfair state aid just prior to privatisation.

The US tariffs, which are separate from US levies introduced in March imposing between eight and 30 per cent on certain imported steel products, have already been criticised by the European Union.

According to the final WTO panel report, dated June 19 but released to all WTO members on July 31, "The US department of commerce did not examine whether the privatisation that occurred after the original imposition of countervailing duties, was at arm's-length and for fair market value."

"Thus the US failed to determine whether the privatised producers received any benefit from the financial contributions previously bestowed to the state-owned producers."

Washington should have concluded "that no benefit resulting from prior financial contribution continues to accrue to the privatised producer," the report continued.

European trade commissioner Pascal Lamy hailed the report's findings.

The waves of privatisations in the sector followed the restructuring of the European Steel market in 1987-88 and again in 1998.