Brussels, 14/09/2005 (Agence Europe) - On Tuesday, Ecuador rejected the new European Commission proposal on a customs duty of 187 euros/tonne for imports into the EU of third country bananas, thus leaving predictions open that there will be a new arbitration procedure at the WTO (EUROPE 9025).
“The proposal is absurd. The EU prefers to protect its former subsidised colonies rather than encourage good practice for labour, social and environmental law”, Eduardo Ledesma, Director of the Ecuadorian exporter association (AEBE) said in criticism. “We do not accept this new tariff. Ecuador must shake itself and oppose the new offer. We recall that the aim is to reach zero or a minimum”, Antonio Noboa, Executive Vice-President of the banana company, Bananera Novoa, said. Vicente Wong, who heads the company Reybanpac, said it was not necessary for the Ecuadorian exporters to meet again to “act” and “to demand further WTO arbitration, in order to gain a reduction in customs duties for fruit entering Community territory”. At present, the Latin-American bananas have a customs duty on them of 75 euros/tonne within the limit of a fixed quota of 2.2 million tonnes. Over and beyond this quota, they are taxed at 680 euros/tonne. Ecuador, the fourth largest producer worldwide, supports the lowest duties possible and, failing this, keeps the current system.
The Costa Rican banana producer association, Corbana, is also dissatisfied with the Commission's proposal. According to Jorge Sauma, of Corbana, the tariff of 187 euros/tonne is still too high and discriminatory and does not allow the market share of the Latin American countries to be safeguarded on the European continent. Corbana President Romano Orlich said he hoped the WTO panel would also reject the new customs duty proposed by the EU. He stresses there should be collaboration with EU authorise allowing a favourable outcome to be found for all parties.