On Thursday 2 February, the European Parliament approved the revised stabilisation mechanism for bananas, contained within the multiparty free trade agreement between the EU/Colombia, Ecuador and Peru and the EU and Central America by 544 votes to 78, with 21 abstentions.
MEPs ratified the agreement concluded during the trilogue between the Slovak Presidency of the Council and Parliament negotiators, led by Marielle de Sarnez (ALDE, France), in December 2016 (see EUROPE 11689) and then approved by the international trade committee at the end of January (see EUROPE 11710). This will involve revision of the stabilisation mechanism for bananas which seeks to reduce the risk destabilisation on the banana market for European producers following Ecuador joining the multiparty free trade agreement between the EU/Colombia and Peru on 1 January.
Parliament obtained four concessions on the single draft regulation on Ecuador’s integration and will merge the two current regulations governing banana stabilisation mechanisms as part of the EU/Colombia and Peru agreement and the one between the EU/Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama).
The Commission will first of all need to respond when the volume of banana imports into the EU over a 12-month period from one of these nine countries reaches an annual threshold for triggering the mechanism. The Commission will have to suspend the preferential rights applied to the bananas from the country concerned over the same period for a period not exceeding three months or decide that this kind of suspension is not appropriate. Under the terms of the current regulations, the Commission is not subject to this obligation.
The regulation also includes an early warning system that will compel the Commission to inform the Council and Parliament when the maximum import volume threshold from one of the nine countries has reached 80% which will therefore provide a picture of the global import volumes situation into the EU from the nine Latin American countries.
Parliament also provided clarification regarding the safeguard clause for a ten-year period, which, in the case of Ecuador, will have to apply from the entry into force of Ecuador’s accession to the multiparty agreement with Colombia and Peru.
Parliament also obtained a joint declaration from the three institutions demanding an extension of the stabilisation mechanism in negotiations after it expires at the end of 2019. The Commission will provide regular EU banana market analyses and take appropriate measures if market deterioration is observed.
The new regulation will enter into force following the official approval by the Council.
Ms de Sarnez said “Ecuador’s accession to the trade agreement with Colombia and Peru has a significant impact on EU banana producers. It might possibly destabilise a sector which plays an essential role in the outermost regions and is responsible for 37,000 jobs. It is therefore very important that our producers be better protected… Finally, I believe that we reached a good deal, which is good for our producers and for our outermost regions”.
Speaking on behalf of the EPP, Tokia Saïfi, Maurice Ponga and Franck Proust welcomed the amendments made to the current mechanism, which will protect European producers better, particularly those is in overseas departments in the event of disturbances on the European market.
On behalf of the S&D, Louis-Joseph Manscour, Emmanuel Maurel and Eric Andrieu from France, who did not support Ecuador joining the EU/Colombia and Peru trade deal during the ratification vote at the end of 2016, due to the absence of a revised mechanism, welcomed the adoption of the new instrument which they said would ensure “adequate protection” for European producers, particularly those in Guadeloupe and Martinique. Mr Maurel explained that, “The question of extending this instrument and producer support measures are now on the table”. He called on the Commission to clarify its position on the question of dismantling tariffs and to make a commitment to no longer reduce the tariff that has been lowered to €75 per ton for South American bananas. (Original version in French by Emmanuel Hagry)