THE EU Commission will learn today or tomorrow if there is to be a potentially damaging trade war between it and the United States which has threatened to ban EU beef imports in a row over chicken.

In his keynote address to the First European Beef Congress in Venice at the weekend, the EU Commissioner for Agriculture, Mr Franz Fischler, warned the Americans that the EU is not afraid of them. He explained that the EU and the US are in negotiations over veterinary matters in relation to chicken. The negotiations cover production methods, inspections and the way chickens are raised in the US. No agreement had been reached between the two sides, he said.

"The US has indicated that if there is not agreement before April 15th, it will ban the import of beef from the EU," he said. "These threats are something that do not scare us. We are not afraid. The US will have to shoulder the consequences of such actions" he warned.

The EU did not intend to leave the negotiating table and had already reached agreement with the US on veterinary matters relating to beef production, Mr Fischler said. The commission expected an answer from Washington early this week, he added.

Mr Fischler said that the issue of natural growth promoters in beef was currently being adjudicated on by the World Trade Organisation and he expected its ruling on the matter in June.