Brussels, 20/03/2000 (Agence Europe) - Ecuador has obtained approval from the World Trade Organisation to impose sanctions on the European Union over bananas. The amount proposed, USD 450 million, was nevertheless lowered by the expert panel to USD 201.6 million in additional duties, reported diplomatic sources, who wished to remain anonymous. In another panel, the Union is thought to be securing a favourable verdict on the United States' decision to introduce retaliation measures without awaiting the Geneva decision on bananas.
The European Commission has expressed the hope that Ecuador will not take retaliation measures without trying to negotiate an amicable solution. The European trade policy official confirmed in Oporto (see page 9) that the Union would comply with the WTO verdict. The report is expected to be distributed to the 135 WTO member countries on 24 March. Ecuador could then request consultations with Brussels on possible European compensation, as a means of avoiding trade retaliation measures. Should it come to sanctions, this case would be the first in which a developing country imposes such measures on a Northern partner. The measures being considered by Quito involve suspension of the concessions granted to the EU under the TRIPs on intellectual property, principally affecting geographical ascriptions, wine and spirits, musical recordings and European industrial models, as well as services.