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Latin American Countries Call EU Before WTO Over Banana Tariff Plans

by Mike Godfrey, for LawAndTax-News.com, Washington

01 April 2005

It emerged this week that Ecuador is heading a group of Latin American countries angered by the European Union's plans to change its banana tariffs from next year.

Under the proposed 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 would continue to benefit from preferential tariff rates.

According to international media reports, Ecuador's Ambassador to the World Trade Organisation, Herman Escudero announced earlier this week that:

"Today I signed a letter to the chairman of the WTO General Council requesting arbitration."

The WTO now has thirty days to appoint an arbitrator, and a further 90 days to reach a decision on the matter.

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