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United Press International | By JOHN ZAROCOSTAS

GENEVA, Switzerland, Oct. 24 -- The World Trade Organization, acting on charges made by Australia and New Zealand, ruled Tuesday that U.S. tariffs on lamb imports violate global trade rules.

The finding by the three-member WTO dispute panel, which in most cases have been upheld on appeal, was considered a blow for U.S. lamb producers in Montana and Idaho, but a major victory for their counterparts in Australia and New Zealand. The United State was expected to appeal the decision.

U.S. Sen. Max Baucus, D-Mont., was instrumental in pushing for the contested punitive measures, which Australian Prime Minister John Howard described as "appalling" and protectionist.

The U.S. measures, enacted on July 22, 1999, for a three-year period included average tariff hikes of 6 percent on imports of lamb for approved quota volumes. The measure included out-of-quota supplies duty hikes of an average of 32 percent over the period. Previous tariffs were at a 1 percent rate.United Press International: