EU set to drop dumping measures vs Norway salmon

By William Schomberg

BRUSSELS, May 9 (Reuters) - The European Union is set to drop its anti-dumping measures against imports of farmed salmon from Norway, ending a long-running trade dispute between the bloc and Oslo, people familiar with the decision said on Friday.

The EU imposed minimum import prices on Norwegian salmon in 2006 after nearly a decade of wrangling, saying the fish was being sold at unfairly low prices and damaging fish farms in Scotland and Ireland. Norway denied its exporters were breaking trade rules and took the case to the World Trade Organisation.

After an internal review of the measures, trade officials at the EU's executive European Commission have recommended to EU member states that the minimum prices be eliminated, the people familiar with the situation said.

"It looks like the case is going to be closed," said one of the people.

The dispute has been watched closely by investors in Norway's aquaculture companies, which include the world's biggest fish farmer, Marine Harvest (MHG.OL: Quote, Profile, Research).

The Commission's recommendation will be discussed by trade experts from EU governments this month and is almost certain to be approved, the people familiar with the case said.

The WTO found last year that the EU was at fault on several points in its handling of the salmon dumping case, although Brussels as well as Oslo claimed victory from the ruling.

The 27-nation EU is Norway's biggest export market for seafood, the country's third-biggest export earner.