SWITZERLAND: European Union, United States and Latin America initial a banana deal ending a decades-old dispute

Record ID: 561789

  • Title: SWITZERLAND: European Union, United States and Latin America initial a banana deal ending a decades-old dispute
  • Date: 16th December 2009
  • Summary: GENEVA, SWITZERLAND (DECEMBER 15, 2009) (REUTERS) WORLD TRADE ORGANISATION (WTO) HEADQUARTERS EXTERIOR SIGN ON WALL READING: "WORLD TRADE ORGANISATION" EUROPEAN UNION'S AMBASSADOR TO THE WTO ECKART GUTH WALKING INTO THE MEETING, FOLLOWED BY PERU'S AMBASSADOR EDUARDO PONCE MAN PLACING DEAL DOCUMENTS ON TABLE PAN INSIDE THE MEETING ROOM PONCE SIGNING THE DEAL DOCUMENT DELEGATIONS IN THE MEETING ROOM COSTA RICA'S AMBASSADOR TO THE WTO, RONALD SABORIO SOTO, SIGNING THE DEAL AMBASSADORS APPLAUDING (SOUNDBITE) (English) COSTA RICA'S AMBASSADOR TO THE WTO RONALD SABORIO SOTO SAYING: "I believe this is very much a historical day. There is a banana agreement that has been finally signed between the European Union and the Latin American countries." COSTA RICA'S AMBASSADOR TO THE WTO RONALD SABORIO SOTO TALKING TO JOURNALISTS (SOUNDBITE) (English) COSTA RICA'S AMBASSADOR TO THE WTO RONALD SABORIO SOTO SAYING: "I believe that the banana dispute had the potential of derailing the whole round. Bananas have been a very difficult issue not only between the EC (European Community) and the Latin Americans, but between the EC or EU members themselves for ages, and today that's over." SOTO SITTING
  • Embargoed: 31st December 2009 12:00
  • Keywords:
  • Location: Switzerland
  • Country: Switzerland
  • Topics: International Relations,Economic News
  • Reuters ID: LVA6734HGDZJAUQO7EFNBZZ5732M
  • Story Text: The European Union and United States initialled a deal on Tuesday (December 15) with Latin American, African and Caribbean nations ending a decades-old trade war over bananas.
    The pactthe world's longest-running trade dispute and also removes a potential obstacle to a new deal to open global commerce in the World Trade Organisation's 8-year-old Doha round. Final signature is expected to take place next year.
    Costa Rican Ambassador Ronald Saborio Soto said this was a historic day.
    "I believe this is very much a historical day. There is a banana agreement that has been finally signed between the European Union and the Latin American countries," he said.
    Under the deal, the EU -- the world's biggest importer of bananas -- will cut the duty it applies to bananas from Latin American countries such as Ecuador and Costa Rica which have long complained of discriminatory treatment.
    It will also give aid of about 200 million euros (300 million US dollars) to banana growers in certain African, Caribbean and Pacific countries.
    These mainly former European colonies currently enjoy preferential treatment on exports to the EU and will see their relative advantage eroded under the deal. The aid package is meant to help them to adjust.
    Bananas are a key export and economic cornerstone for many countries including Cameroon and Dominica.
    Although the United States does not export bananas, it is a party to the deal because major distributors of the fruit Chiquita, Del Monte and Dole are U.S. corporations.
    Ireland's Fyffes is also an important distributor.
    Soto added the banana dispute has been a difficult issue for the EU as well as Latin America.
    "I believe that the banana dispute had the potential of derailing the whole round. Bananas have been a very difficult issue not only between the EC (European Community) and the Latin Americans, but between the EC or EU members themselves for ages, and today that's over," he said.
    WTO Director-General Pascal Lamy, who played a discreet role nudging the tense negotiations towards a conclusion during the global trade body's Nov. 30-Dec. 2 ministerial conference, welcomed the deal on Tuesday.
    The agreement is good news for consumers in the European Union as well as banana producers in Latin America as it stands. The deal will cut the tariff paid on bananas from Latin American countries in eight stages to 114 euros a tonne in 2017, from 176 euros now, with an initial cut to 148 euros on final signature of the deal but taking effect retroactively to Tuesday's initialling.
    Because the deal must be approved by the EU's 27 member states, requiring translation into 23 official languages, it may be six to nine months before signature is possible.
    In return, Latin American banana producers and the United States will drop legal challenges to the EU over its banana regime, which has been repeatedly condemned by WTO courts for discriminating against the Latin American growers.
    The dispute, dating back to at least the 1957 Treaty of Rome founding the European Economic Community, the EU's precursor, was finally resolved over the past
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2011. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register