The agreement comes as a new chapter in the long-running dispute over Europe's refusal to import beef from the US that has been produced using growth-promoting hormones.

US trade representative Ron Kirk and EU trade commissioner Catherine Ashton, in a joint statement, say the agreement, in principle, will provide additional duty-free access to the EU market for high-quality beef, including an additional 20,000 tons in the first three years and increasing to 45,000 tons beginning in the fourth year.

The US won a World Trade Organisation (WTO) case against the EU's ban on US beef and this year would have been allowed to impose import tariffs on a new list of European goods.

Under the May 6 agreement, the US will maintain existing sanctions and will not impose new sanctions on EU products during the initial three-year period.

During the fourth year the US will eliminate all sanctions.

The two sides will refrain from further litigation at WTO regarding the EU's ban on beef treated with certain growth-promoting hormones for at least 18 months.

Before the end of the four-year period, the two sides will seek to conclude a longer-term agreement.

American Meat Institute president J. Patrick Boyle said in a May 6 statement, "We hope that the member states will approve this agreement.

"While this is only a first step, we are hopeful that it represents movement in ending the trade friction that has existed for so long.

"We hope that this initial opening will lead to a larger and fuller restoration of beef trade in the future."