The culmination of the so called 'banana wars' between the European Union and Latin American banana exporting nations has been hailed by Pascal Lamy, director general at the World Trade Organisation (WTO), as an example of 'good will and compromise'.
A final agreement was signed by all parties today including the EU, Latin American nations and the US, ending one of the longest-running trade disputes ever brought to the WTO, which has taken in 'more than 100 meetings lasting approximately 400 hours', according to the WTO.
'I welcome the news that that a comprehensive agreement on bananas has now been reached,' said Mr Lamy in a statement. 'This has been one of the most technically complex, politically sensitive and commercially meaningful legal disputes ever brought to the WTO. It has also been one of the longest running 'sagas' in the history of the post World War 2 multilateral trading system.'
The dispute surrounded the perceived preferential treatment of African-Caribbean-Pacific (ACP)banana exporters, many of whom enjoy tariff-free entry to the EU asformer colonies some European nations, over their Latin American counterparts.
Latin American countries have long claimed that these regulations,which have seen their banana exporters pay €176 per tonne for entry to EUmarkets, are unfair – a claim backed by the WTO, which ruled against the EU in the matter of the tariffs' legality.
Under the new deal, the duties on bananas will fall to €114 pertonne by 2016, with an initial cut to €148 per tonne. Tariffs willalso be slashed on other, smaller producers such as the Philippines andThailand. In return, Latin American banana producing nations areexpected to drop challenges to the EU at the WTO.
One of the sticking points to the deal had been the level ofcompensation the EU was offering ACP countries, who claim that they willsuffer from the loss of their preferential treatment, with a level ofaround €200m now said to be agreed.
'After lengthy consultations, legal examinations, negotiations and gentle prodding by an 'honest broker', a solution has been found,' Mr Lamy added. 'This proves there is no trade issue which lies beyond the reach of WTO members when they exhibit good will and a spirit of compromise.
'I hope that the same pragmatism, creativity and diplomacy will help move forward the Doha round negotiations,' he said.
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