World Trade Organization rules against Europe in banana dispute

The World Trade Organization has ruled against the European Union's tariff on bananas in a decision that represents a victory for Latin American producers. But Europe says it will lodge an appeal.

Wednesday, May 21, 2008

The ruling says that the tariff breaks international trade agreements by giving preference to the former French and British colonies in Africa, the Caribbean and the Pacific, which are allowed to export 775,000 metric tons of bananas tariff-free each year.

More on this topic

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.

Doha and the fading of the banana agreement

August 2008

The Doha Round has left the banana producing countries of Latin America with bad aftertaste, after the fading away of what was supposed to be a clear victory for their foreign trade.

This has to do with an agreement that would have ended almost 16 years of litigation with Europe as a result of the banana tariffs that the old continent imposes upon the producers from the zone.

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.

Europe accepts cuts in tariffs on Latin American banana imports

July 2008

The European Commission announced that it is accepting the World Trade Organization (WTO) proposal to lower the tariff on banana imports from Latin America.

The scheme was proposed by WTO director-general Pascal Lamy in order to resolve a dispute that involves the European Union, Latin America and the African, Caribbean and Pacific (ACP) countries.