Bridges Weekly Trade News Digest • Volume 12 • Number 41 • 3rd December 2008
WTO Rules Against EU Banana Import Rules, Again; Ecuador Threatens Doha Veto If Issue Unresolved
Discuss this articleShare your views with other visitors, and read what they have to say
The WTO’s highest dispute court on November 26 upheld a ruling against the EU in its extended battle over banana trade with Latin American countries and the US.
The Appellate Body backed a WTO compliance panel’s determination that the way the EU’s import regime for bananas discriminates against Latin American exporters, and that Brussels has failed to comply with earlier WTO rulings.
The 27-nation trading bloc has a duty-free import quota from some former European colonies in the group of African, Caribbean and Pacific (ACP) countries, along with a standard import tariff of 176 euros per tonne, which applies to Latin American and other exporters.
Brussels introduced the current import rules in 2006, in the wake of a series of unfavourable WTO rulings against its old system of duties and quotas. Ecuador has argued that the new system discriminates against non-ACP banana suppliers, and fails to meet an EU pledge to “at least maintain total market access” for countries not benefiting from preferential access.
The Appellate Body addressed complaints from Ecuador, a leading banana exporter, and the US, which, though not a direct exporter, is home to three major multinational companies - Chiquita, Del Monte and Dole - with plantations in Latin America.
“It is time for the EU to do the right thing and implement a tariff-only regime for bananas that meets the interests of all parties involved,” US Trade Representative Susan Schwab said in a statement.
Following the ruling, Ecuador warned that it would veto any agriculture agreement in the struggling Doha Round of global trade talks if the dispute is not resolved to its satisfaction. Ministers from several WTO Members are likely to meet in Geneva later this month to try to reach a framework Doha deal on cutting tariffs and subsidies; the consensus of each of the WTO’s 153 Members is necessary for an agreement.
Brussels and a group of Latin American nations struck a tentative deal on banana trade in July, during the last attempt by ministers to negotiate a breakthrough in the WTO talks. In it, the EU promised to cut its banana tariffs over seven years to 114 euros per tonne. But the EU insists that the banana accord was part of the Doha round talks, and is now moot, given the breakdown of the July meeting.
Nonetheless, Brussels, after accepting the appeals ruling, said it would seek a final resolution “once and for all” to the longstanding dispute this month, as negotiations for a Doha deal once again intensify.
ICTSD reporting; “WTO rules against EU in bananas dispute,” THE ASSOCIATED PRESS, 26 November 2008; “Ecuador threatens Doha deal over banana dispute,” REUTERS, 26 November 2008; “WTO rejects EU appeal over banana ruling,” AGENCE FRANCE PRESSE, 26 November 2008.
Add a comment
Enter your details and a comment below, then click Submit Comment. We’ll review and publish the best comments.