EU Requests Second WTO Arbitration In Banana Tariff Dispute

by Ulrika Lomas, for LawAndTax-News.com, Brussels

29 September 2005

The EU on Monday submitted a request for a second arbitration on its proposal for a new import tariff for bananas from countries benefiting from Most Favoured Nation status.

The European Commission has carefully analyzed the award from the first arbitration, and stated that it is confident that its revised proposal for an import duty of €187/tonne for MFN suppliers and a tariff quota of 775,000 tonnes at zero duty for bananas originating in ACP countries maintains market access for MFN suppliers and an equivalent level of preference for ACP suppliers to the current regime.

The intention remains to have a tariff only system in place on 1 January 2006.

Mariann Fischer Boel, EU Commissioner for Agriculture and Rural Development, announced that:

“The EU has carefully analyzed the arbitration award, revised its proposal accordingly, and initiated consultations with our Latin American and ACP partners on this basis. Despite our efforts, we were not able to come to an agreement with our partners. Nor did they present an alternative proposal of their own. Time is now running out for the introduction of the tariff only regime by the beginning of next year. This is why we are requesting a second round of arbitration today. I still hope we can find a solution to this long-running dispute which will be acceptable to everyone.”

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