WASHINGTON, Nov 8: The World Trade Organization has established a dispute settlement panel to investigate US allegations that a Mexican anti-dumping duty on American rice is illegal, the US Trade Representative’s office said on Friday.

In June, the Bush administration announced it would file the WTO complaint against Mexico, saying the year-old punitive duties against long-grain white rice violated WTO rules.

Mexico typically buys about $100 million worth of all types of rice, according to USTR. Since Mexico imposed the duties, there has been a 50 per cent decline in the approximately $17 million in US exports of milled rice to Mexico, USTR said.

Mexico claims the United States was exporting the rice at below-market value, causing injury to its domestic producers. The United States denies the allegations.

Rice is just one of several agricultural commodities the two countries are fighting over. Sugar, high-fructose corn syrup, pork and beef trade disputes also are simmering between Mexico City and Washington.

The WTO panel could take a year or so before deciding the US complaint.

CHICAGO: Chicago Board of Trade rough rice futures ended lower on Friday on late local and speculative selling, brokers said.

CBOT rough rice futures settled down 6 to 13 cents per hundredweight, with November rough rice down 10 cents at $7.55 and January down 13 cents at $7.72 per cwt.

Trade was extremely slow, one CBOT rice broker said. There was sizable buying of January and February from Refco Inc. and ADM Investor Services, but then light scale-up farmer sales.

Estimated rough rice trading volume on Friday was 275 futures, compared with Thursday’s trade of 359 lots. Options volume was estimated at 55 lots.—Reuters