THE WORLD Trade Organisation's (WTO) acceptance of a Latin American complaint of imminent damage to its banana trade by European Union (EU) tariff proposals has endangered the arrangement under which Jamaica and other African, Caribbean and Pacific (ACP) producers have profited from preferential access to the EU market.
Those in the Caribbean who have been surprised by this have been deluding themselves. The deregulation of international commerce, and the dismantling of preferential markets under the force of globalisation show no sign of slackening. The changes that face the Caribbean's sugar preferences in Europe, like this week's WTO ruling, are a consequence of these forces.
The outlook for bananas may not be as extreme as it may appear. Mme Claude Veron-Reville, the EU's spokesperson for trade issues, has said that Brussels will try to ensure some preferences for bananas. Jamaica and other banana producers should not be lulled into a false sense of comfort from promises such as these.
Although the challenge to the EU proposals was made by nine countries, major beneficiaries of a dismantling of the ACP preferences will be U.S. companies that control banana plantations in Latin America.
The WTO ruling is the culmination of years of persistent attacks on the EU regime, crafted by these companies, and articulated by the U.S.
government.
Any continuation of the preferences, even in a modified form, will be the subject of similar attacks that could involve already frayed trade nerves in Washington and Brussels. It is unlikely that the EU will consider another 'banana war' with the U.S. as being worth the continuation of contentious preferential consideration for the ACP bananas.
There is little in all this to comfort Jamaica and other producers seeking a way to maintain jobs and income from a sector that is significant to the economy and the society. However, rather than hanging on to slender hopes for a continuation of preferences, we suggest that the sector makes efforts to deal with the situation.
Firstly, banana interests and the agriculture ministry should determine the extent to which Jamaican banana farms - or some of them - will be able to compete beneficially in the new and more competitive market that is promised by the WTO ruling. This would help to prepare the sector for any adjustments it may have to make in order to retain even a part of the market.
Secondly, the sector should determine whether there are new areas in which it could be profitable, such as in the rapidly growing and lucrative market for organic bananas.
The worst thing to do would be to stand still and hope for salvation from the goodwill of others.
THE OPINIONS ON THIS PAGE, EXCEPT FOR THE ABOVE, DO NOT NECESSARILY REFLECT THE VIEWS OF THE GLEANER.
