Banana prices set to fall after EU trade deal
Banana agreement welcomed
Long-standing trade dispute brought to an end
Strasbourg 15 December 2009. The EU’s move to end the banana war with Latin America has been broadly welcomed by Robert Sturdy MEP, international trade spokesman of the European Conservatives and Reformists group, but the money promised to compensate African, Caribbean and Pacific countries must reach the producers.
The EU has given preferential treatment to producers in the ACP, which has led to challenges by Latin American countries at the WTO. However, the EU is expected to initial a deal today that will see its tariffs fall to 114 dollars per tonne by 2016, with an initial cut to 148 dollars. In response, Latin America will drop its WTO challenges.
The EU will also grant ACP producers 200 million Euros of aid to offset the losses caused to them.
Mr Sturdy said:
“Whatever the justification, it was wrong for the EU to give preferential treatment to one set of producers over another. Ending a bitter and long-running dispute with Latin America and the USA is significant because it shows that with a little bit of good will, we can move past protectionism.
“The EU is right to give ACP producers a soft landing. They will need legal certainty that their markets will not dry up and that the assistance being given by the EU reaches the producers and not the large distributors and processors.
“European consumers will see the price of their bananas fall as a result of this decision.”
ENDS
ECR Press Office – Alex Benjamin +32 (0)476 056 450
