Latin American Countries Angered By EU's Banana Tariff Plans

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

02 February 2005

The European Commission on Monday announced plans to amend tariff levels on banana imports from Latin American countries, a move which is likely to end up receiving the scrutiny of the World Trade Organisation (WTO).

Under the planned new regime, set to come into force in January 2006, Latin American banana exporters would no longer be limited by quotas, but would be obliged to pay a duty of EUR230 per tonne (up from the current level of EUR75 per tonne).

However, producers in African, Caribbean and Pacific countries will continue to benefit from preferential tariff rates.

In a statement on the matter released earlier this week, the EC explained that:

"The new proposed duty preserves the current level of market access for WTO members exporting bananas to the EU under the WTO’s most favoured nation conditions. The Commission has proceeded with this notification to the WTO under the terms agreed in Doha in 2001. These terms had been explicitly requested by the Latin American exporting countries, and they provide for the possibility of arbitration on the level of the tariff."

According to reports, leading officials from Columbia, Costa Rica, Ecuador, Guatemala, Honduras, Nicaragua and Panama recently met in Ecuador to sign a declaration rejecting the EC's proposals. It is thought likely that they will appeal the matter before the WTO.

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