Ecuador will refuse to continue negotiating a commercial agreement with the European Union until the bloc agrees to cut import tariffs on banana shipments from the South American country.
That was the verdict according to president Rafael Correa, who said on his weekend radio and television broadcast that the EU's failure to comply with World Trade Organisation (WTO) rulings would hamper negotiations over the wider agreement.
'If the EU doesn't comply with the WTO, we won't continue to negotiate that trade agreement,' said Mr Correa in his broadcast. 'In the end we might lose a few dollars, however we won't lose our dignity.'
Commercial trade negotiations between Ecuador and the EU also involve neighbours Colombia and Peru, according to Bloomberg.
The European Union is currently negotiating with Latin American nations over areduction in banana import tariffs, with the bloc proposing cuts fromthe current mark of €176 per tonne to €114 per tonne by 2016.This would involve an initial cut to €148 per tonne next year.
However, African, Caribbean and Pacific countries have argued that a lower tariff wouldseverely hit their own exports, which have enjoyed duty-free access formany years.
