Due to the possible change in the regulations established by the European Union on the use of agrochemicals in the production of the fruit that enters their territory, exporters in the region are on the alert for the possible complications that this would generate in the commercialization.
In order to protect the health of consumers, European authorities could vary the maximum residue limits (MRL's) that food entering the region may contain.
The European Parliament voted to lower tariffs on Latin American bananas by 35% for the next six years.
Under the agreement, the tariffs on banana imports from Latin America will decrease from the current 176 Euros to 114 Euros per ton in 2017.
"Once it is approved by the WTO later this year, the agreement will mark a victory for the world´s largest banana producers, a battle fought for almost 20 years in order to access the EU market inexpensively, the largest global fruit consumer," reported the article by Reuters.
The Trade Commission of the European Parliament approved the agreement reached by the EU and Latin American countries to lower tariffs on banana imports.
The agreement was signed by the EU, U.S., Ecuador, Colombia, Costa Rica, Panama, Guatemala, Honduras, Mexico, Nicaragua, Brazil, Peru and Venezuela, in late 2009.
Prensalibre.com adds, "Under the compromise, the tariffs on bananas from Latin America were reduced from 176 Euros per ton, to 148 Euros and then lower to 114 Euros per ton within approximately eight years."
An agreement signed yesterday allows the banana industry to export to Europe paying fewer tariffs.
Currently, the tariff stands at 176 Euros per metric ton. With the agreement, it will be immediately lowered to 148 Euros, and will be gradually reduced to 114 Euros until January 2017.
The agreement was signed by the European Union, Brazil, Costa Rica, Mexico, Panama, Venezuela, Colombia, Ecuador, Guatemala, Nicaragua and Peru.
The European Union will assist Banana growers from Africa, the Caribbean and the Pacific with $259 million.
These resources are intended to make the sector more competitive.
Such initiative is in response to an agreement struck in December 2009 between the EU and other banana exporters, mostly Latin Americans, which sought to reduce the preferential treatment given to ACP countries.
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.
The agreement between Europe and Latin America generated optimism, but ACP countries and the U.S. must still be pleased.
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.
The proposal accepted by Latin American banana producers lowers the tariff from 176 to 114 euros per ton.
It will be gradually lowered until 2017.
"The first phase will last three years, with tariffs reduced to 136 euros. In the following two years there won't be reductions, reaching 114 after the next three years, in 2017...", reported Prensalibre.com.
The proposal of the European Union is to lower the current tariff from 176 to 114€ per ton between 2009 and 2019.
According to Nacion.com, "European Trade Commissioner Catherine Ashton acknowledged yesterday that a reduction of banana tariffs is 'inevitable' because that is the way it was established by judgments from the World Trade Organization (WTO)."
The ruling establishes that the EU tax tariffs on banana imports break global trade rules in order to favor former British and French colonies.
The decision of the board of appeals that was released yesterday could help to push countries that export the fruit to ask the global organization to impose tax sanctions on EU products in return.
The ruling against the EU confirms the decision of the organizations dispute board in April, which asked the block of 27 countries to act within the scope of global trade agreements.
The European Union is willing to negotiate better access for Central American banana within the framework of the bi-regional agreement of association.
The chief European negotiator, Rupert Schlgemilch, said to EF that the solution for banana is not only in Geneva, since this negotiation is about a preferential agreement, he cannot imaging the possibility of excluding banana and leaving it to be resolved by the WTO.
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