Bridges Trade BioRes • Volume 5 • Number 2 • 4th February 2005
EU Banana Proposal Meets Latin American Resistance
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Banana exporting nations in Latin America issued a joint statement on 3 February criticising the EU’s plan to impose a duty of 230 euros (US $290) per tonne of bananas starting 1 January 2006. The plan is part of an effort to move from the trading block’s contentious first come - first served import system of bananas towards a new tariff-only system by 2006 (see BRIDGES Weekly, 18 April 2001). In a scenario echoing the so-called “banana wars” of the 1990s when the WTO ruled against the EU’s preferential banana import system, Latin American countries reacted angrily to the EU’s proposed, scheme, raising the possibility of launching a WTO challenge to tariff rates they see as too high. Latin American exporters, including several major US companies, fear that the substantial tariff will price them out of the EU markets given that imports from African, Caribbean and Pacific (ACP) countries have a duty-free quota of 750,000 tonnes. Currently, Latin American imports of bananas into the EU are subject to a 75 euro/tonne levy for the first 2.7 tonnes of imports per annum and a 680 euro/tonne levy above that limit. Meanwhile ACP officials suggested the proposed tariff was too low and would threaten their domestic industries. Nonetheless, Caribbean leaders are considering to convene a special meeting between Caribbean banana producers and their Latin American counterparts to discuss a tariff rate that would be acceptable to both parties.
“Trade-EU: Banana War Looms Once Again,” TERRAVIVA, 2 February 2005; “Latin American Countries Ready to Bring Bananas Back to WTO,” AFP, 1 February 2005; “Caribbean: Plan for Conference With Latin American to Oppose EU Banana Regime,” CMC, 1 February 2005; “EU Announces Banana Duty, Sparking New Fight With Latin America,” BLOOMBERG, 31 January 2005; “Latin Countries to Pan EU Tariff Plan For Banana Imports; Lawsuits Threatened,” WTO REPORTER, 3 February 2005.
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