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Friday, Jul 18, 2008
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E.U. banana plan threat to Doha Round talks

David Gow

Brussels: A plan by the E.U. to cut the price of bananas threatens to derail next week’s last-ditch talks to save the stalled world trade liberalisation negotiations.

African, Caribbean and Pacific (ACP) countries have said they will walk out of the talks on the Doha Round in Geneva if their preferential treatment for banana exports to the E.U. is scrapped or watered down too far.

The dispute arose after the European Commission said it had accepted, in principle, compromise proposals on banana exports tabled by Pascal Lamy, WTO Director-General, last week.

Mr. Lamy’s plan could eventually cut the price of bananas for European consumers by reducing the tariff on non-ACP bananas. The E.U.’s deal with ACP banana exporters gives duty-free access for up to 7,75,000 tonnes a year. Caribbean governments say this helps lift thousands of small farmers out of poverty but it has been struck down 11 times by WTO panels acting on complaints from the U.S. and Latin American countries in the dollar zone. The U.S. exports no bananas to Europe but three U.S. firms — Chiquita, Del Monte and Dole — are among the biggest distributors. Mr. Lamy’s proposals would include a “peace clause” to stop all WTO disputes procedures. Peter Mandelson, E.U. Trade Commissioner, said on Wednesday night: “Resolving this long-running problem must be part of a final Doha deal.” — © Guardian Newspapers Limited, 2008

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