Trans-Atlantic trade tensions appeared to ease on Friday as Baroness Ashton, the EU trade commissioner, welcomed a decision by the US to delay the imposition of a highly unpopular sanctions regime.

So-called "carousel" sanctions, which would be applied on a rotating basis to various EU goods, including French Roquefort cheese, were authorised by the outgoing Bush administration in January in retaliation for the Brussels ban on hormone-treated US beef.

Baroness Ashton singled out carousel sanctions as a matter of particular concern during a meeting with journalists last month, and threatened to take Washington to take legal action if they were not removed.

On Friday, she hailed a decision by Washington to delay the imposition of the duties one month to April 23 as the two sides continue to seek a solution.

"We welcome the US decision to postpone the introduction of these sanctions. The EU and U.S. are engaged in negotiations to find a way forward on this issue, and I am confident we will find a solution very soon," Baroness Ashton said.

An EU trade official indicated that a resolution of the beef dispute, which dates back to the 1980s, was possible in a matter of days. However, any agreement might only be temporary, this person said.

Nefeterius McPherson, a spokesperson for the US trade representative, confirmed that the two sides were making progress "on a possible interim solution" to the dispute. "These discussions have made progress, although several important issues remain to be resolved," Ms McPherson said.

The delay of the carousel sanctions came as the EU defended its decision to impose temporary anti-dumping and anti-subsidy duties on imported US biodiesel fuel.

That issue is likely to surface when Baroness Ashton visits Washington on Monday, where she is expected to meet with Ron Kirk, the US trade representative nominee, and members of Congress.

Baroness Ashton is hoping to determine the US' willingness to push forward on the stalled Doha round of trade negotiations. Last month, she challenged the Obama administration to recommit to Doha, and said American leadership was essential if a deal was to be achieved.

The two sides will also discuss fears of rising protectionism around the world as governments seek to shield their industries from the effects of the economic crisis. One of the most contentious examples was the Buy American provision in the US economic stimulus bill, which has since been amended.

The EU has also come under criticism for dairy subsidies and national bailout plans for industrial sectors.