(GENEVA) - The World Trade Organisation ruled in favour of Mexico on Thursday in a dispute with the European Union about duties imposed on imports of olive oil to the Latin American country, a WTO dispute panel said.

The EU made a formal request for talks with Mexico on the issue in 2006 after Mexican authorities imposed increased duties on olive oil imports to balance out subsidies.

The EU said the move violated WTO rules and formally asked for the organisation to intervene after talks failed to resolve the dispute.

"The European Communities did not establish that Mexico failed to comply with the requirement ... to exempt olive oil from imposition of countervailing duties," said the dispute panel.

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