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Banana exports to EU threatened

JAMAICA'S BANANA exports to the European Union (EU), through the Banana Export Company Limited (BECO), could be affected by proposed rule changes scheduled to come on stream in the United Kingdom on July 1.

Minister of Foreign Trade, Anthony Hylton, told the House of Representatives on Tuesday, that the export of bananas to the United Kingdom, could be seriously hampered during the current transition period, unless the proposal not to licence BECO was withdrawn.

He said that BECO, the sole exporter of Jamaican bananas to the UK, had submitted an application to the UK's Intervention Board, to be registered as a traditional importer, in order to procure the necessary import licences to allow the bananas to enter that country. But, the UK Board has decided that BECO did not qualify as a traditional operator and, therefore, ineligible for a licence.

The decision would not come into effect until July 1, Mr. Hylton explained for The Gleaner yesterday, but would disrupt the orderly and smooth transition from preferential treatment, as the EU lowers trade barriers progressively in favour of non-ACP developing countries.

Mr. Hylton said yesterday that he had made the strongest possible protest against the decision. He has written the EU Trade Commissioner, Pascal Lamy, requesting his intervention and has met with various representatives of the UK Government, as well as the UK Intervention Board, who have committed themselves to seek guidance from the European Commission.

While the Board has proposed no licences for BECO, it has accepted two other Jamaican-related exporters, Jamaica Producers and Fyffe, to share the preferential quota. But, Mr. Hylton, said that if BECO was not licensed this would affect the ability of Jamaican small farmers to have their bananas access the UK market during the five-year transition period.

He said that he was awaiting a decision from the UK at any minute now. However, he is optimistic that it would be reversed on the strength of the legal arguments offered by the Jamaican Government, which he described as "compelling."

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