BRUSSELS (AP): The European Union said Tuesday it would appeal against a World Trade Organization ruling that European import tariffs for bananas unfairly discriminate against many Latin American countries.

A WTO panel released Monday said Brussels was breaching global trade agreements by favoring imports from Africa, Caribbean and Pacific states - many former French and British.

It backed a complaint from the United States that could eventually allow Washington to levy retaliatory taxes on European goods equal to the amount of damage incurred by American companies such as Chiquita Brands International Inc.

The U.S. has never declared the loss it believes is suffered by American companies because of the tariff.

EU spokesman Peter Power said the ruling was ``irrelevant'' because the EU had changed its preferential tariffs for ACP states at the start of 2008.

``It sets a bad precedent,'' he told reporters. ``We believe that such a decision encourages WTO challenges by (WTO) member states which are not affected by a particular decision and it is our attention to appeal.''

The ruling was the latest in a series of WTO decisions against the EU's banana regime stretching back over 10 years. While the EU repeatedly has tinkered with the import rules in recent years, none of the changes has withstood challenges at the trade body.

Washington brought its case with the backing of major fruit companies such as Chiquita, which have been demanding the EU overhaul the system that gives preferential conditions to former British and French colonies and several other countries.

The case centered on an import duty for bananas established by the EU in 2006 _ euro176 (US$258) per ton _ which the bloc claimed was in line with WTO rulings. But the U.S. rejected the argument.

Latin American bananas currently have around 60 percent of the EU banana market, while African and Caribbean producers have 20 percent, according to EU officials. Bananas grown in the EU _ mostly on Spanish and French islands _ account for the other 20 percent.

Last month, the EU lost a separate case brought by Ecuador, which claims to have lost US$131 million in the first 15 months of the tariff's existence.