Will there be peace in the 'Banana Wars'?

The agreement between Europe and Latin America generated optimism, but ACP countries and the U.S. must still be pleased.

Wednesday, December 2, 2009

Latin America accepted an offer by the European Union to gradually reduce the tariff applied to banana imports from 176 euros per ton to 114 euros in 2017.

This reduction will negatively affect African, Caribbean and Pacific countries (ACP), to whom Europe will compensate with $280 million in development aid. Some ACP countries consider this amount insufficient.

More on this topic

Agreement Puts an End to "Banana War"

November 2012

The eleven Latin American countries involved signed the agreement ending twenty years of banana trade disputes with the European countries.

The so-called "banana war" between the European Union (EU) and several Latin American countries-including six Central American countries- officially came to an end on Thursday, with the signing of a trade agreement promoted by the World Trade Organization (WTO).

Banana Dispute Comes to an End

December 2009

Latin American banana growing countries landed a tariff agreement with the European Union.

Under the terms of the new agreement, the tariff will be immediately reduced from 176 euros per ton to 148 euros. In the next 10 years it must be gradually reduced to 114 euros.

"It is not yet know what compensation will be paid by the European Union to Asian, Caribbean and Pacific countries, who had requested $250 million for losing their preferences", reported EPA.

Costa Rican producers pushing for summit of banana producing countries

September 2008

The proposal to hold a summit came up last July 28 when the EU announced that it would not company with the agreement that was reached.

When recently contacted about the followup being given to the proposal, the Minister of Foreign Trade, Marco Vinicio Ruiz, stated that the matter is not a priority for his Ministry.

EU and Latin Americans agree on banana tariffs

July 2008

Europe could soon reduce its tariff on bananas by 28 euros per ton. Under an agreement signed last weekend, its import duties would fall to 114 euros per ton from the current 176 euros by 2016.

The agreement calls for an initial reduction of 28 euros.
Under the present system, Europe has a preferential agreement for former colonies of its member nations, but its complex tariff-quota system has come under fire by the World Trade Organization.