Ecuador may ‘take reprisals’ against EU

Fruitnet.com 22 January 2009

Ecuadorian minister says economic reprisals may be considered as a means of pressuring the EU to reduce its banana tariff

Ecuador has not ruled out taking “economic reprisals” against the European Union in a bid to pressure member countries to reduce Europe’s controversial banana import tariff system.

With the South American nation having submitted a fresh complaint to the World Trade Organisation (WTO) over the tariff system this week, Ecuador’s chancellor, Fander Falconí, told Reuters that reprisal measures were being considered.

A government delegation from Ecuador is set to travel to Brussels next week to seek a rapprochement with the EU over a proposal that was agreed between the two sides at the Doha Round of trade negotiations to lower the tariff from E176 per tonne to E114.

However, Mr Falconí told reporters: “We do not rule out taking reprisals.

“We have begun a diplomatic offensive to outline what Ecuador has lost as a result of the tariff and the effect this has had on business and the balance of payments, which is vitally important given the current global crisis.”

Ecuador this week submitted a new complaint against the EU to the WTO for allegedly failing to comply with the terms of a ruling made in July 2008 over the tariff regime.

Under the terms of last year’s WTO ruling, the EU has been told to gradually reduce the current tariff level from €176 per tonne to €114 per tonne by 2016.