EU plans to extend banana import duty

Banana-producing countries in Latin America have reacted angrily to EU proposals to extend the imposition of full import duties on the fruit. The duties will be levied until 2019, three years longer than initially proposed. After that date, the duty will fall from 176 euros to 114 euros per tonne. The European proposal was tabled at World Trade Organisation talks in Geneva.

bananasFormer European colonies, mainly in Africa and the Caribbean, are exempt from paying any duty on exports to the EU. These countries, usually referred to as the ACP countries, fear that stronger competition from American banana multinationals will force them out of the European market. This exemption is denounced as 'preferential treatment' by the Latin American countries and the United States.

Retaliatory measures
Ten banana exporting countries have said they are rejecting the EU proposal. They are threatening to impose retaliatory measures and are demanding that the reduction in duty be introduced in 2016 as originally agreed.

The EU does not feel bound by the original 2008 agreement because, Brussels says, it is conditional on the Doha Round negotiations being concluded. Currently, Doha is stalled, therefore in the EU's view the old agreement does not apply.



Source: radionetherlands.nl

Publication date: 2/25/2009