17 June 1999
No WTO inquiry on wheat gluten

THE European Union has failed to secure a World Trade Organisation (WTO) investigation into quotas imposed last year on wheat gluten by the USA.

The USA announced a three-year quota restriction in June, in response to claims of a surge in imports.

Brussels lodged a WTO case in March, arguing that the restrictions were unjustified and discriminatory.

Despite having its application rejected this time, Brussels can make another request for an investigation, which the WTO is obliged to accept.

In another case before the WTOs dispute settlement body, the EU was granted a panel on US measures affecting $500 million (£315m) of European goods in the banana dispute.