GENEVA (AP):
THE WORLD Trade Organisation (WTO) ruled yesterday that a new European Union (EU) tariff on imported bananas is illegal, siding with eight Latin American countries who said Brussels' proposal would seriously limit their ability to export the fruit.
A WTO arbitration body backed a claim by the Latin American countries - including Brazil and Colombia - who said that a reduced EU tariff of ¤187 (US$227) per tonne fails to comply with global trade rules. The WTO ruled in August against an earlier EU proposal of ¤230 per tonne, which the Latin American countries claimed would have had a "devastating effect" on the development of their economies.
The Latin American countries are asking that the tariff be reduced to euro75 per tonne.
The report concluded that new tariff "would not result in at least maintaining total market access" for Latin American exporters and queried Brussels' methodology for arriving at the tariff figure.
Earlier this year, the EU formally proposed an overhaul of its banana import programme at the WTO after its previous system of tariffs and quotas - which favour the interests of traditional suppliers in Africa and the Caribbean over large-scale growers in Latin America - was found to be against global trade rules.
But speaking yesterday to The Gleaner, regional negotiator Ambassador Richard Bernal said Caribbean Community (CARICOM) banana-
producing countries were "very unhappy" about the latest WTO ruling.
CONSULT WITH INTERESTED PARTIES
"There is a feeling of outrage in the region," said Bernal, who heads the Regional Negotiating Machinery. Noting that the arbitration panel did not specify a figure, the ambassador said the EU would now have to consult with "all interested parties" to arrive at a new figure acceptable to the WTO.
