FACTBOX-Bananas dispute at the World Trade Organisation

Wed Jul 23, 2008 6:30pm BST
 
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(Reuters) - A row about the European Union's import regime for bananas is one of the longest-running trade disputes at the World Trade Organisation, and threatens to derail talks on a new global trade pact.

Bananas are vital to the economies of several Latin American countries, such as Ecuador, the world's biggest exporter, and to other former European colonies in Africa, the Pacific, and the Caribbean (ACP) -- especially in the West Indies.

But the Caribbean exports rely on preferential treatment in the European market. The Latin Americans are increasing their market share even under present arrangements, but say they are being held back from selling more of a crucial product.

Some ACP countries accept they may have to pull out of the banana business. But whether they quit or attempt to become more competitive, they want time and protection in that transition.

The United States does not grow or export bananas on a large scale, but several U.S. companies are major distributors of Latin American produce -- Chiquita Brands International, Del Monte Foods and Dole Food.

Within the EU, Ireland's Fyffes is an important distributor of bananas.

THE DISPUTES

Latin American producers and U.S. distributors have mounted nearly a dozen successful challenges to EU import rules for bananas that favour imports from former European colonies in the ACP countries.

In the face of those challenges, the EU cut its tariff for bananas to 176 euros a tonne, while retaining a duty-free quota for the ACP countries of 775,000 tonnes. Previously Latin American exporters paid 75 euros a tonne within set quotas but 680 euros a tonne in excess of the quotas.  Continued...

 

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