The European Commission's annual "Report on United States barriers to trade and investment" voiced concern over what the EU calls "unilateralism" in the US trade policy, accusing Washington of sometimes defying multilateral trade rules.

"World trade problems should not be solved through forced settlements based on a unilateral determination of unfairness, unilateral timetables and the threat of unilateral trade action if no agreement is reached," the report said.

Also singled out for criticism in the 63-page report were customs user fees and excessive invoicing requirements on importers, "Buy America" provisions in the US government procurement rules and indirect support to the US aircraft manufacturers.

As an example of unilateralism, the report attacked Section 301 of the US Trade Act which was invoked by the United Statesearlier this year during a row with the EU over the bloc's banana import policy. Washington said the policy discriminated against Latin American growers and the US marketers.

The EU report said that, to comply with time limits imposed by Section 301, the US had violated normal World Trade Organisation (WTO) procedures for solving the dispute.

Before the WTO set the level of sanctions or authorised the move, the US in March demanded that importers post bond to cover threatened 100 per cent duties on $520 million of EU exports.

In April, the WTO authorised the US to impose sanctions on only $191 million of EU exports in the case.

The US then made the sanctions retroactive to March 3, "in flagrant violation of WTO rules," the report said.

The 15-nation EU, which has agreed to reform its banana import rules, has launched WTO cases against the US measures imposed in March as well as Section 301 of the US Trade Act.

The banana case is one of several disputes that have soured transAtlantic traderelations in recent years. The US has also imposed $117 million of sanctions on EU exports in a row over its ban on imports of hormone-treated beef.

The report pointed out that trade differences were set against the background of the most important trade and investment ties in the world, with two-way trade in goods and services accounting for more than 460 billion euros ($480.9 billion) in 1998.

The US regularly attacks government subsidies for European aircraft maker Airbus Industrie.

The EU report hit back, saying 70 per cent of NASA's aeronautics spending of more than $1 billion a year could be classified as support to the US Large civil aircraft sector.

The US civil aircraft manufacturers also benefitted to the tune of $615 million to $1 billion in fiscal year 1997 from Department of Defence research and development spending, it said.

The report also condemned "excessive use" of the US national security restrictions "as a disguised form of protectionism."

It said the EU strongly opposed"extraterritorial" provisions of the US Legislation which sought to regulate EU trade with other countries.