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The European Union is a very significant player in the world banana trade, importing about a third of all traded bananas - about the same amount as North America, but more than three times as much as the third biggest importer, Japan. EU policies therefore have a major impact on the world trade in bananas. Although the import policy reform introduced on 1st January 2006 has drastically reduced the level of market intervention by the EU, it remains one of the few managed banana markets in the world. The United States and Russia, for example, allow bananas in freely, without any customs tariffs and with no limits on volumes imported.
From July 1993 to December 2005 though, the EU chose to manage its banana market by restricting quantities imported from all sources. This market intervention made it the centre of controversy ever since Brussels first announced its import policy for the Single European Market in December 1992. Since the Common Organisation of the Market in bananas was first introduced there has been two reforms of import arrangements provoked by rulings in the World Trade Organisation – in 1999 and 2001. There have also been amendments in quota volumes when the EU grew to 15 member states in 1995 and then to 25 in 2004.
The EU produces almost one sixth of its total banana consumption in the Canary Islands (Spain), the French overseas departments of Martinique and Guadeloupe, Madeira (Portugal), Cyprus and very small quantities in Crete (Greece). The rest it imports from former Caribbean and African colonies ('ACP' bananas) and from Latin America ('Dollar' bananas).
Historically, special ties developed between certain consuming countries within the EU and producing countries, often within the context of a common colonial history of repression and dependence. Until the Single European Market countries like France and Britain, which have had a long history of colonialism, mostly imported the fruit from their colonies. Other EU members imported the cheapest bananas available, which are from the large-scale plantations of Latin America.
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