Washington - The United States and European Union on Wednesday struck a provisional deal to end their long-running dispute over hormone-treated beef.

While the EU will maintain its 21-year ban on beef treated with growth-inducing hormones, the deal raises the limit on duty-free non- treated beef from the United States and Canada allowed to enter the EU.

The United States earlier this year threatened to slap new trade sanctions on a wide variety of European products if there was no resolution. This deal puts off sanctions for at least four years, and both sides have also agreed not to take the issue before the World Trade Organization for at least 18 months.

"We have reached an understanding that provides a pragmatic way forward in the long-running beef dispute," US Trade Representative Ron Kirk and EU Trade Commissioner Catherine Ashton said in a statement.

An agreement is in our mutual interest, and we will now discuss this with our respective stakeholders and constituencies in an effort to finalize it as soon as possible," the statement said.

Under the deal, US and Canadian exporters will be able to send an extra 20,000 tons of duty-free beef to the EU over the first three years, and increase that to 45,000 tons in the fourth year. The agreement will then be reviewed.