Now that EU ministers have agreed to modify the union's import regime, the US and Ecuador are due to lift trading sanctions they had imposed against the EU.

The decision, which has been welcomed by the European Commission, means that phase II of the understandings reached by the Europeans with the US and Ecuador earlier can the year can finally be implemented.

Phase II refers to the second stage of the interim period which precedes the introduction of a new tariff-only system for the import of bananas into the EU, scheduled to be in place by January 1, 2006 at the latest. From January 1, 2002, a number of technical modifications mean that 100,000 tonnes will be transferred from the C quota to the B quota (to all suppliers. The remaining 750,000t of the C quota is therefore reserved for bananas of ACP origin. This means that former colonies of EU member states will account for some 83 per cent of the total quota.

EU farm commissioner Franz Fischler said: 'I am happy we can now put this never-ending story to rest.' Undoubtedly, it means that banana operators along the whole supply chain can now work in a more stable environment after years of uncertainty.

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