Geneva, May 19 - The European Union's regime for importing bananas, which gives preferential treatment to fruit from former European colonies, continues to break international trade rules, the World Trade Organisation (WTO) said on Monday.
A WTO compliance panel, handing down a judgment in the case brought by the United States, said the EU had failed to implement previous rulings in the case.
This had harmed U.S. trade rights, the panel said, implying that Washington was entitled to demand sanctions from Brussels.
The ruling marked another defeat for the European Union over its banana imports, one of the longest running global trade disputes, and followed a similar ruling a month ago in a case brought by the world's biggest banana exporter Ecuador.
The United States does not export bananas to the EU, but three of the biggest distributors with plantations in Latin America are U.S. multinationals -- Chiquita Brands International Inc, Del Monte Foods Co and Dole Food Co.
The case will also be of interest to Irish fruit distributor Fyffes.