27 November 2008, www.freshplaza.com

An appeal by the EU has fallen through after the WTO confirmed that the bloc's banana import policies were inconsistent with global trade rules
The World Trade Organisation (WTO) has this week ruled that the European Union's import tariffs for bananas break global commerce rules, dismissing an appeal by the bloc. The decision confirms the verdict reached by the WTO's dispute settlement panel in April, which ruled that duties should be brought in line with global trade agreements, following complaints by Ecuador and the US that current tariffs unfairly favoured African-Caribbean-Pacific (ACP) countries.

Latin American countries are currently subject to a tariff of €176 on bananas exported to the European Union, while former European colonies in ACP regions can export bananas tariff-free. The EU had offered to lower tariffs on Latin American bananas at the Doha round of WTO talks in Geneva during July, but the deal fell through amid the wider collapse of the negotiations. WTO members could reconvene in December to attempt to settle the long-running trade talks, which began in 2001. "The EU considers the Doha round to be the right forum for resolution, and we are ready to take up the negotiations on a deal on bananas with all suppliers where they were left in July," said EU Commission spokesman Peter Power in a statement.
Carl Collen |

Source: http://www.fruitnet.com/content.aspx?ttid=11&cid=2060


Ecuador Ups Ante on Banana Deal

27 November 2008, www.reefertrends.com

Immediately after the WTO ruling Ecuador said it would not agree to agricultural accords in the Doha talks if the EU fails to settle a long-running banana dispute before then. 

"Unfortunately, our country will not agree to the consensus to settle the agriculture terms of the (Doha) round ... if this problem is not properly resolved by then," the Foreign Ministry said in a statement. The official, who asked not to be identified, said the EU should eventually cut its current duty of €176 per MT of bananas to €114 in eight years. Latin American states came close to securing a deal with the EU during a WTO ministerial meeting in July, but Brussels walked away from the deal when the broad Doha negotiations fell apart.

Source: http://www.reefertrends.com/news/8951


Panama Extols WTO Ruling on EU Banana Regime

27 November, www.freshplaza.com

Panama welcomed today the ruling of the World Trade Organization (WTO) condemning the European Union banano regime, considered contrary to the interests of fruit exporters. According to Gisela Alvarez de Porras, Panama Minister of Trade and Industries “it is clear that each occasion when there has been a vote on the banana import regime before the WTO, the result is the same.”

“This should open a working space that concludes with the application of a tariff which really guarantees the stability of our producers and exporters to that market”, he added. It must make “the EU reflect on the need to apply and honor the agreement reached with the suppliers of Latin America on July last,” said the Panamanian official.

This ruling, the Minister added, “supports the negotiation and the spirit of consultations which has always motivated us”, as banana is among the agricultural items most important to the country.

In its moment, the arbitrators established that under a single tariff system, any tax above the 75 euros (96 dollars) per ton would widen the preference margin of producers of Africa, the Caribbean and the Pacific. Without taking this into account, the EU imposed a tariff of 176 euros (226 dollars) per ton and it is precisely the point questioned by the WTO.

Source:  http://www.freshplaza.com/news_detail.asp?id=33982