The United States is moving forcefully to protect its rights

US Trade Representative Robert Zoellick

To compensate for these losses, the US is imposing punitive tariffs on Ukrainian imports of metals, footwear and other goods.

The measures, entering into force in January, follow the failure of the Ukrainian parliament on Thursday to endorse legislation to fight the piracy.

In August, the US suspended trade preferences for Ukraine which, it suggested, could lead to sanctions.

Redoubled efforts

The US says Ukraine is one of the major sources for the trade in counterfeit CDs. It had been urging Kiev to take action for about two years.

Announcing the new sanctions, US Trade Representative Robert Zoellick, said the US had tried to avoid introducing the punitive tariffs but Ukraine had not fulfilled its commitments "to pass adequate legislation to stop the unlicensed production of optical media products".

He said the US had to move "forcefully" to protect its rights.

"We hope Ukraine will now redouble its efforts to deal with intellectual property rights piracy and pass the legislation needed to allow us to lift the sanctions," Mr Zoellick said in a statement.

WTO threat

He warned Ukraine that failure to address the problem of "rampant intellectual property rights" would adversely affect the country's bid to join the World Trade Organisation.

"Without adequate intellectual property rights legislation, it is difficult to see how Ukraine can address either America's concerns or WTO rules," Mr Zoellick said.

The Ukrainian Government, which is one of the biggest recipients of US aid, has repeatedly pledged to halt piracy.

In July, it said it would launch a legal crackdown within three months.

But music firms, which say Ukrainian piracy costs them more than $200m every year, fear Kiev's initiatives have not gone far enough.

Pirated CDs, tapes and videos are widely available on the streets of Ukraine, and throughout Eastern Europe.