The Latin American banana-producing countries and the European Union signed an agreement concerning the EU regulations applied on its bananas imports on December 15, 2009 in Geneva. Under this agreement, the EU will reduce the bound duties on imports of bananas from 176 to 148 euro per metric ton during the coming year, followed by a gradual reduction to reach 114 euro per metric ton by 2017. These reductions will take place as agreed unless the Doha Round modalities aren’t agreed by 2013. In this case, the implementation of the agreement will be delayed for two years, during which, the bound rate prescribed for the year 2013 as 132 euro per metric ton will stay in force. Then the gradual reductions will resume as determined. In all case, the E.U. new duties will apply on MFN basis.
Ecuador noted that this agreement may not end the conflict completely unless the EU reaches a compensation settlement with the suppliers of bananas from the African, Caribbean and Pacific Group of States. Thereby, the EU under will provide an additional financial aid to the ACP countries up to 200 million Euros annually to improve their competitiveness in the production of bananas with their counterparts from the countries of Latin America.
The bananas agreement constitutes am effective ending to the dispute that persisted for about 18 years, when Costa Rica filed a complaint to the GATT Council in 1991 against the import regime applied by the E.U. This regime which granted some ACP countries, which are mostly former European colonies preferential treatment that exempt their banana exports to the EU from customs duties. Other countries, such as Ecuador, Guatemala, Nicaragua, Venezuela, and Colombia, whose companies constitute a large share in global banana trade joined the complaint. The U.S. also joined these countries against the E.U. regulations in 1996.
The chairman of the Negotiating Group on Agricultural will hold several meeting to discuss possible ways on how to make use of this agreement to foster the Doha negotiations on agriculture.
On his part, WTO director general Pascal Lamy praised this agreement noting that it will resolve the long lasting dispute over bananas. He also hoped that this agreement will consequently stimulate the Doha negotiations.
