The European Commission said yesterday that a US move to target more than $900 million (€823 million) of EU goods for possible retaliation in a dispute over hormone-treated beef did not help efforts to resolve the crisis.

"Threats of excessive retaliation don't help to create a climate which is conducive to finding a mutually acceptable solution," according to Commission spokesman, Mr Gerry Kiely.

He was commenting on the US publication on Monday of EU exports which could be affected in the wrangle over an EU import ban on hormone-treated beef.

Washington has threatened sanctions against the EU if it does not lift its ban on such beef by May 13th in line with a World Trade Organisation ruling.

US officials said the initial list would be reduced to about $300 million before any sanctions go into effect.

"The $900 million figure and even the $300 million is totally out of line with their own calculation of trade losses.

"WTO rules clearly indicate that sanctions cannot be punitive or exceed the trade losses," Mr Kiely said.

Other EU officials stressed the need to keep talking to the US to resolve the dispute which follows another transatlantic dispute over banana trade.

US Trade Representative Ms Charlene Barshefsky charged that the EU had been intransigent in its refusal to honour trade rulings that go against it.

"The problem we have with Europe is probably one of 20 years' standing, which is their consistent refusal to implement findings of dispute settlement bodies in agricultural product cases," she told reporters following testimony at a congressional hearing.