Negotiators have agreed on a binding appeals procedure for decisions by GATT panels, which rule on certain trade disputes between countries, the official said.

The Japanese decision was in contrast to its refusal last month to let a GATT panel handle the complaints.

A GATT panel rejected the argument by Thailand that the ban was intended to protect its citizens' health.

GATT panels have found a number of American practices illegal, including certain types of export subsidies and fees that Congress has imposed.

A ruling by a GATT panel earlier this month on the Canadian petition found that many state practices are discriminatory against foreign beers.

Many analysts predict a round of Government-to-Government negotiations to deal with the issues raised by both GATT panels.

Canadian beer executives say a GATT panel has now ruled in favor of the Canadians.

GATT panels can rule against U.S. laws even under existing rules.

Should a GATT panel find against the community, the Europeans could come under pressure to rescind the ruling.

The GATT panel said the taxes and tariffs were appropriate as long as they were comparable to taxes on other, similar domestic goods.