FYI: EU defeat in banana export battle

[Henk Elegeert]

REPLY TO: D66 at nic.surfnet.nl

"
  EU defeat in banana export battle

A new European Union tariff on imported bananas has been declared
illegal by the World Trade Organization (WTO).

The WTO backed a claim brought by Latin American countries, who argued
the EU tariff would have a "devastating effect" on their economies and
exports.

Under a EU system set for launch in January 2006, imports faced a tariff
of 230 euros ($280.30; £158.50) a tonne.

The new tariff had aimed to safeguard exports from countries in the
African, Caribbean and Pacific (ACP) group.

Most were former colonies, and for years their banana crop had received
preferential treatment.

Currently, Latin American exports to the EU are limited, with the duty
per tonne set at 75 euros for the first 2.7 million tonnes of exports,
rising after that to 680 euros per tonne.

Under the new regime, ACP producers would have continued to export
bananas duty-free.

Proposals to replace quotas with higher duties would have cost producers
more and threatened livelihoods, the group of Latin American countries
had claimed.

'Market access'

A report by the WTO said the new tariff would "would not result in at
least maintaining total market access" for Latin American exporters.

It also questioned the way in which EU arrived at its decision to impose
the 230 euros charge, but it did not suggest a new figure.

Latin American producers welcomed the decision, and Brussels now has 10
days to enter discussions with the nine Latin American exporters.

"We will start consultations with interested parties without delay," EU
Trade Commissioner Peter Mandelson said.

"I hope that everyone will cooperate in finding a mutually acceptable
solution within the strict deadline set by the WTO."

Banana wars

Meanwhile a statement from the European Commission added that if the two
sides fail to reach agreement it would request a second round of
arbitration.

Following a series of rows in the 1990s - known as the "banana wars" -
the EU was forced to introduce a new set of tariffs for the fruit by 1
January 2006, as the present system was regarded as discriminatory
towards US and Latin American companies.

However, in the latest WTO case the Latin American producers - Ecuador,
Colombia, Costa Rica, Guatemala, Honduras, Panama, Brazil, Nicaragua and
Venezuela - argued the new rate broke a WTO-brokered accord that the
changes should "at least maintain" their access to the EU market.

Latin American producers currently make up about 60% of the market, with
African and Caribbean producers taking a further 20%.

EU-grown bananas - mainly from Spanish and French islands - make up the
final 20%.

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/4735983.stm

Published: 2005/08/01 19:00:32 GMT

© BBC MMV
"

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