Geneva - The World Trade Organization established on Friday a panel to deal with the disagreement between China and the European Union over certain iron and steel fasteners.

Beijing said European anti-dumping measures against the fasteners from China were illegal, according to international trade laws.

The EU, which did not try to block the establishment of the panel, said its anti dumping measures were about "fighting unfair trade" and were not protectionist in nature.

China and the EU have seen trade increase rapidly in recent years, with Beijing becoming the bloc's biggest trading partner after the US.

Joining the case as third parties were Canada, the United States, Taiwan, India and Japan.

Trade disputes handled through the Dispute Settlement Body, the internal legal system of the WTO, can take years to reach a resolution. (dpa)