EU and Ecuador reach banana agreement

- Last updated on GMT

Related tags: World trade organisation, European union, International trade

The EU and Ecuador announced on Monday that they have reached an
agreement to resolve their long-standing dispute over bananas in
the World Trade Organisation...

The EU and Ecuador announced on Monday that they have reached an agreement to resolve their long-standing dispute over bananas in the World Trade Organisation (WTO). The EU and the US arrived at a compromise earlier this month to end the eight-year transatlantic trade dispute over bananas. Ecuador had objected to the EU-US deal and had threatened to take the dispute back to the World Trade Organisation (WTO) if the EU did not make some changes. Welcoming the agreement, European Commissioner for Trade Pascal Lamy, European Commissioner for Agriculture Franz Fischler, and Ecuadorian Foreign Minister Heinz Moeller said in a joint statement: " It is a landmark result in that the European Commission and Ecuador, a developing country and the single largest exporter of bananas, haveachieved this satisfactory outcome."​ They added, " It is now possible to say that the major parties to the long running banana dispute have been able to agree on a solution that represents a fair balance between the competing interests. These interests include the main supplier of bananas to the EU, the producers of bananas in the EU, the ACP countries and of course the European consumers."​ The new regime will provide increased opportunities for Ecuadorian exports. It abolishes the EU's import break down on a country quota basis, increases the import volumes from Latin America by 100 000 tonnes, and improves market access to traditional and non traditional importers from Ecuador, following the WTO ruling on GATS. The new regime will hold for a transitional period through to the establishment of a tariff-only system by 2006. Source: European Commission

Related topics: Policy

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