Global trade chiefs on Friday ruled the United States had acted legally when deciding how it regulates textile imports.

The World Trade Organisation overturned a complaint from India that US guidelines on the rules of origin for imports favour domestic suppliers and imports from the European Union over other regions. India had claimed that the US rules determining how imported textiles and apparel are accounted for in quotas for individual countries discriminate against certain countries but their claim was rejected by a panel of trade experts.

"This is an important victory for American trade laws and American textile trade," said US Trade Representative Robert Zoellick in a statement. "Detailed US rules of origin for textiles help make sure that everyone plays by the rules." Indian officials now have 30 days to appeal against the ruling by the Geneva-based global trade group.