Brussels, 22/09/2000 (Agence Europe) - The European Commission should decide in favour, on 4 October, of the feasibility of the distribution mechanism of banana quotas according to the "first come, first serve" principle. Indeed, according to sources close to the issue, it emerges from consultations this summer with third supplier countries and operators in the sector, then since the summer break with the relevant services of the customs authorities of Member States, that such a mechanism is not only compatible with the World Trade Organisation (see EUROPE of 16 September, p.9), but is also practicable on the ground. The Member States, MEPs, the United States and Ecuador still have to be convinced (9 October) that this solution is the right one for definitively resolving, taking into account the interests of every party in the best possible way, a dispute that is as complex and laborious, while rapidly alleviating the weight on European industry of the current sanctions and the threat of a retaliatory carrousel.
According to the same sources, the Commission now has quite a precise, although somewhat theoretical idea of how a quota regime would work, where markets shares are distributed on the basis of the "first come first served" principle. It thus believes it is possible to ensure a regular supply from the Community market and to avoid a certain number of aberrations and discrimination (mainly to the cost of the countries that are physically the most remote from the Community market, such as Ecuador), providing for safeguards, among other things, against the risk of speculation, over-supplies, over-booking, boat races and authorisations, unending storage in ports of surplus supplies, etc. In order to do so, and taking inspiration from the suggestions advanced by Washington, it will no doubt recommend the use of a method for the pre-allocation of quantities that can be imported at preferential rates (at this stage 75 or 275 euros/tonne) in order to allow operators to adjust their supply to European needs, rather than a simultaneous examination of authorisations requested and importable quantities. The pre-allocation would be on the basis of: i) prior notification, by the owner of the bananas and an adequate boat, of quantities that can be sold in the Union, of the boat that will deliver them and the port of destination (it remains to be determined whether this should be done before or after loading or one day before arrival); ii) the deposit of a guarantee on cargoes and their effective delivery; iii) a physical control upon arrival of quantities delivered. If supply exceeds demand, one and the same coefficient of reduction would apply to all importers.
It remains somewhat vague, whether voluntarily or not, concerning some aspects of the mechanism and the project in which it would be included (proposal of November 1999). At the same time, a will for flexibility in talks to come has now been demonstrated by the Commission. The solution will be modulated depending on the results of discussions, it was stated by the same source. And there are many objections to be raised. It is mainly expected that the United States will grumble not only because it insists on preserving the market share it already holds (through Dole and Chiquita) before the establishment of a common regime (pre-1993) but also because it would probably be excluded, given the marginal production, from negotiations on the level of the future single duty to be applied and definitively in the context of the tariff only regime. Furthermore, in addition to the well-known reservations of Member States that want to reach such a system immediately and others, like producer Member States, that do not, the EP will insist no doubt for better protection of ACP suppliers to be guaranteed, by increasing to 300 euros/tonne the duty of 275 euros/tonne currently proposed for the other supplies.