Brussels, 08/04/2008 (Agence Europe) - On Monday 7 April 2008, the World Trade Organisation (WTO) again found the EU banana import system guilty of discrimination against non-EU countries selling so-called dollar bananas. The WTO dispute settlement body therefore agreed with Ecuador, the plaintiff. Other countries (Guatemala, Honduras, Mexico and the United States) have also complained to the WTO in this case. The European Commission has let it be known that it disagrees with the conclusions of the report of the WTO's special group and is considering appealing. Since 1 January 2006, the EU has been distinguishing between two categories of banana imports - ACP states, which have a 775,000 tonne quota free of import duties; and other, 'dollar',' banana producers, which pay import duty of €176 a tonne.
What the WTO said and the European Commission response:
Banana import duty for dollar bananas. The EU banana import duty for banana dollars (€176 a tonne) is too high and therefore incompatible with various GATT 1994 measures (General Agreement on Tariffs and Trade), notes the report of the WTO banana panel. The European Commission regrets 'that the panel has not taken into consideration market data. Latin American supplier shave largely benefited from the EU regime introduced in 2006. Imports from those countries have increased by more than 14% compared with the prior regime.' since 2006, when the new EU banana import scheme came into force, explains Commissioner Fischer Boel's department.
Preference for ACP states. The WTO's panel of experts says the EU's preference for ACP states (a 775,000 tonne banana quota without any import duties) is incompatible with GATT Article I-1. The WTO special group says this EU preference for ACP states constitutes a benefit for this category of bananas which is not granted to similar bananas imported from other countries outside the EU and outside the ACP. Fischer Boel's department says that 'most of the report is largely academic'. The Commission points out that 'the preference for ACP bananas examined by the panel no longer exists'. Since 1 January 2008, the preferences for ACP states have been granted under the Economic Partnership Agreements (EPAs) or interim agreements compatible with WTO rules, argues the Commission. The new trade system, which covers bananas, allows ACP countries to export all their products to the EU without paying import duty (all products apart from sugar and rice). In return, ACP states have to gradually open up 80% of their markets to EU products. (L.C.)