US wants banana inquiry

Date: 03/09/1998

By Myles Neligan

THE US is considering calling on the World Trade Organisation to reopen its inquiry into the EU's banana import regime, just one year after the trade body upheld Washington's complaint that Latin American bananas were being denied fair access to the Union.

While a final decision is not expected until later this month, such a move would be the most politically charged indication yet that the US does not regard the EU's June reform of its banana regime as satisfactory.

“We are dissatisfied with the banana regime reform on a number of counts, and requesting a new WTO panel is one of the options that is actively under consideration,” said a US official. “We are currently studying the legal position to see if this approach is in line with WTO rules.”

The US authorities wrote to the European Commission last week requesting discussions on the possibility of convening a new WTO dispute settlement panel. This fulfils a WTO requirement that bilateral consultations must take place before either party in a dispute is entitled to call for a full review.

But the Commission insists that WTO regulations explicitly rule out any reopening of the case until after the EU's banana regime reforms have come into force.

The changes agreed in June, which consist of reductions in the tariffs levied on Latin American imports, are due to be phased in over the next four months.