(GENEVA) - The World Trade Organization on Wednesday ruled against the United States in a dispute with the European Union over calculating anti-dumping margins.

A WTO panel "concluded that the United States acted inconsistently with its obligations" in its use of the 'zeroing method' when calculating anti-dumping margins in some instances, the WTO said in its ruling.

Used in the calculation of the degree of dumping, zeroing does not take into account instances when exported goods are sold at a higher price than the home market -- what is known as negative dumping.

Brussels, which first brought the case in October 2006, argued that by applying this zeroing method, the degree of dumping goods was increased artificially.

"We welcome the judgment of the panel and are pleased that the panel has condemned the continued use of zeroing by the United States in a large number of measures taken against EU exporters," EU trade spokesman Peter Power said.

Power said that 12 cases have been brought against the United States on the use of zeroing so "the US should not be surprised by today's report."

The position taken by the panel was also consistent with previous case, including one brought against the EU in 1998, Power pointed out.

"We now expect the US to comply with the ruling and put an end to all remaining illegal practices of zeroing," he added.

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