Hopes rise for deal to end banana war

Date: 11/11/1999

By Simon Taylor

HOPES that the long-running EU-US dispute over the Union's banana regime could soon be settled have been boosted after three of the main players indicated they could accept a new European Commission proposal if some changes were made.

The reform plan, which envisages a two-stage approach with special quota arrangements remaining in place for five years before the EU moves to a tariff-only system, was due to be approved by the full Commission today (10 November).

In the run-up to the meeting, both France and UK officials said they could support the plan, with modifications, and the US told the Commission its proposals could provide the basis for a solution.

French officials said their government did “not reject the Commission's approach,” although they warned that Paris would like to see a longer transition period and improved compensation for producers in African and Caribbean countries. UK officials said they would be looking for extra safeguards for Caribbean banana growers.

The UK and France are key players in the banana dispute because of their concern to protect growers in their former colonies and overseas territories. Banana industry experts have welcomed their comments as a sign that the Commission's reform plan could provide a way to resolve the long-standing dispute.

The US, which has imposed sanctions on EU imports because of its failure to reform the regime despite World Trade Organisation rulings against it, has also reacted positively.

US trade chief Charlene Barshefsky says the US could accept a two-stage approach, but insists the system for allocating import licences must be the same for Latin American countries as for ACP states. The Commission has proposed two different distribution systems depending on where the fruit come from.