The US yesterday proposed expanding a list of European products (including cashmere sweaters and mineral water) subject to punitive tariffs in a dispute with the EU over trade in bananas and hormone-treated beef.

The office of the US Trade Representative also said it was considering whether some goods on the list should be removed and whether the 100 per cent duties should be increased.

With authorisation from the World Trade Organisation, the US in April 1999 imposed 100 per cent duties on a range of European Union exports, worth $191.4 million (€206 million) annually.

The retaliation was in response to the EU's failure to change its regulations on banana imports, which, according to the WTO, discriminate against shipments of bananas produced by US companies in Central America.

In a separate row over US hormone-treated beef, banned in the EU on health grounds, Washington received WTO permission last July to impose punitive duties on EU goods worth $116.8 million a year.

A WTO dispute settlement panel found the EU ban on US hormone-treated beef violated global WTO trade rules.

Modifications to the proposed list was mandated by a provision to US trade law that came into force on May 18th.

The office will now consider removing goods from the list and adding others, as well as increasing duties on items where it has been shown that initial levels were not enough to deter EU imports. Suggested new products on the hormone-treated beef list include chestnuts, grape juice, mineral water, dried tomatoes, certain types of sausage, and motorcycles with engine capacities ranging from 50 to 500ccs