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Europe Daily Bulletin No. 9308
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GENERAL NEWS / (eu) eu/wto/agriculture

Ecuador challenges EU banana import system

Brussels, 16/11/2006 (Agence Europe) - On 16 November, Ecuador decided to lodge a complaint with the World Trade Organisation (WTO) against the EU's banana import system, claiming that it discriminates against Latin American banana growers. Ecuador says the EU's new banana import levy (EUR 176 per tonne), introduced on 1 January 2006, is far too high. This new episode in the banana war had the direct impact of suspending the consultation procedure launched after the 2005 Hong Kong WTO summit to try to find an out-of-court settlement between the EU and banana exporting countries in Africa, the Caribbean, the Pacific and Latin America.

Back in 2005, Ecuador and the Central American states of Honduras and Panama lodged proceedings at the WTO to get a reduction in the new customs duty being levied by the EU on banana imports. The European Commission has been caught off-foot by Ecuador's decision to take the issue to the WTO because, as a spokesperson for EU Agriculture Commissioner Mariann Fischer Boel explained on 16 November, the European Commission has a consultation procedure that was working very well and is disappointed that Ecuador felt it had to lodge a complaint against the EU banana import system. Echoing EU banana growers (see EUROPE 9301), the European Commission points out that EU banana imports from Latin America rose 8% in 2006 on 2005. Fisher Boel's spokesperson said this was the proof that the EU system had not reduced access to market for 'dollar bananas', and grumbled that Ecuador's move would not help anyone and the EU's consultation system was working well. The complaint comes at a time when the EU is meeting its commitments to ACP banana producers (providing them with a zero-duty import quota of 775,000 tonnes (see EUROPE 9307)), and is also close to reaching agreement on reforming the aid system for banana growers. (lc)

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