EU PROPOSES NEW IMPORT DUTY ON BANANAS
On 27 October, the EU announced that in amending its banana import regime and moving to a tariff-only system, it would impose a duty of EUR230 per ton of bananas starting in 2006. Following a ministerial meeting between the EU and African, Caribbean and Pacific (ACP) countries in Brussels (see related story, this issue), European Trade Commissioner Pascal Lamy said that after "complex calculations" the EU had decided on a duty that would maintain market shares and market access to the EU for this group. This tariff would end all existing quotas on Latin American and ACP bananas and instead regulate trade solely through tariffs, thus implementing a long-standing WTO dispute (see BRIDGES Weekly, 9 June 2004).
The proposal, however, came under immediate fire. The US Trade Representative, as well as Latin American exporters, criticised the tariff as being much too high. The European Commission’s proposal would dramatically increase a current USD75 tariff rate on Latin American countries. Costa Rica, in a 28 October press release, called the EC offer a "slap to the multilateral trading system," saying it would jeopardise the WTO Doha round. Costa Rica also argued that the proposal violated market access language on tropical products, which Members had agreed to in the 1 August framework that sets the terms for future negotiations. Ecuador said the proposed tariff ”breaks all the commitments to open markets. If we can’t agree on a tariff level, then we will have to resort to arbitration.” The ACP, on the other hand, felt a high, and preferably even higher tariff would prevent more competitive Latin American producers from displacing ACP exports. Although no longer enjoying access under a specific quota, ACP bananas will enjoy duty-free access to the EU market under the new regime. Observers noted that EUR230 was a ”first offer,” bound to undergo discussions and changes.
"Developing Countries Prepare For Banana Battle, " INTER PRESS SERVICE, 29 October 2004; "Costa Rica Reiterates Its Rejection Of The Tariff Only Regime Proposed By The EU," COSTA RICA RELEASE, 28 October 2004.
BASEL CONVENTION COP FAILS TO RATIFY BAN ON HAZARDOUS WASTE EXPORTS
The Basel Convention’s seventh Conference of the Parties (COP-7), which took place from 25-29 October in Geneva, succeeded in affirming that toxic ship dumping is to be controlled, but failed to accomplish its primary objective — to secure the entry into force of the Basel Ban Amendment. In the late 1980s concern grew over the exportation of hazardous waste from the world’s richest countries to developing countries, and the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal, which governs such trade, came into force in 1992. In September 1995, in an effort to give the Convention greater force, the third Conference of Parties negotiated an amendment. If ratified, the amendment would ban the transboundary movement of hazardous recyclable commodities and wastes from OECD countries to non-OECD countries. However, a number of countries, including Australia, the US, Canada, Japan, and the UK, as well as various organisations, such as the International Chamber of Commerce and the UN Conference on Trade and Development (UNCTAD) oppose the ban. Advocates argue that most developing countries cannot manage hazardous waste and that countries will only stop the production of such wastes when they have nowhere to offload it. Critics counter this argument by saying, inter alia, that some developing countries, especially in Asia, may have better capacities for environmentally sound management of wastes than certain OECD members. Further, a ban would most likely not resolve cases of illegal traffic in hazardous waste nor assist in the creation of waste treatment and recycling capacity in developing countries. The critics also question the need for the ban as the Convention already allows countries to prohibit the import of any waste they declare hazardous under domestic legislation.
Thus far, 44 countries have ratified the Basel Ban Amendment, and 62 are needed before it enters into force.
For daily reports and summary of COP-7, see IISD’s Earth Negotiations Bulletin.
"Basel Convention Export Ban Amendment: A Business Perspective," ICC RELEASE, 1 November 2004; "The Basel Convention," GREENPEACE TOXICS CAMPAIGN; "The Seventh Meeting Of The Conference Of The Parties To The Basel Convention," LINKAGES, 29 October 2004; "Toxic Ship Dumping To Be Controlled: Greens Declare Victory Over Shame of Shipping," BAN/GREENPEACE PRESS RELEASE, 29 October 2004.