The World Trade Organization (WTO) ruled on Monday that the European Union had four months to correct its illegal tariff on frozen chicken breasts, otherwise it might face retaliatory measures from Brazil and Thailand.

The rule, issued by WTO arbitrator James Bacchus, said the 25- nation EU must adjust its tariff line on frozen boneless chicken cuts by June 27.

If the EU fails to meet the deadline for adjusting the tariff, both Brazil and Thailand, the two countries who complained to the WTO about the EU's illegal tariff, could seek millions of dollars in retaliation.

On Sept. 27 last year, the WTO's dispute settlement body ruled against EU practices on imports of frozen chicken breasts, but at the time the EU requested 26 months to modify its legislation.

Brazil, however, said the EU should reset the tariff within six months, urging the EU to take immediate steps toward implementing the WTO's decision.

At the request of Brazil and Thailand, WTO arbitrator Bacchus finally set the June 27 deadline for the EU to adjust its tariff.

Source: Xinhua