The Japanese government asked the WTO on Tuesday in Geneva to set up a dispute settlement panel to review a law passed by the US barring state contracts with firms that do business with Myanmar, the officials said.

Tokyo claims the state law violates the WTO accord ruling that member-economies must abolish discriminatory treatment of companies in government procurement.

This is the first Japanese request to set up such a panel with the WTO targetting US trade practices. Washington has filed complaints against Tokyo over several cases including film and liquor trading in Japan.

"We hope the panel will be set up in October," said an official of the international trade and industry ministry in Tokyo.

Sources were quoted by Kyodo news as saying Massachusetts had listed firms that do business with Myanmar and banned them from participating in bids for state contracts.