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.

A spokesman for the European Commission declined to comment when asked about the recommendation to end the measures.

The price of Norwegian salmon has been above the EU's minimum import price of 2.80 euros ($4.29) per kilogram.

Scottish and Irish farmers fear it could fall if Norway ramps up production.

The environment minister of Scotland's regional government, Michael Russell, said in April that if Brussels axed the measures, it ought to make sure they could be reimposed quickly if needed.

The case is delicate for Brussels because Irish fish farmers have said they will try to mobilise voters along the country's western coast to vote against a new EU treaty in a referendum in June, if the measures are repealed.

The case also revealed tensions within the EU over trade issues.

The Commission's review of the salmon measures was requested in 2006 by a group of countries led by Italy that were angry at Britain and Ireland for not supporting a campaign to impose anti-dumping duties on imports of Chinese shoes.

(Editing by Dale Hudson)

By William Schomberg

Fri May 9, 2008 10:17am BST

Source: uk.reuters.com