African, Caribbean and Pacific (ACP) nations have claimed the compromise solution put forward by the World Trade Organisation (WTO) to alter the existing EU banana import regime puts their production in “irreversible jeopardy”.
The proposals put forward by WTO director general Pascal Lamy and accepted by the EU have angered ACP nations, who feel the solution was formed without their consultation.
In a statement, the ACP nations said: “By sanctioning such unacceptable tariff cuts, this compromise solution puts ACP banana production in irreversible jeopardy, by giving undue advantage to the Latin American producers who already account for 80 per cent of the community’s banana imports, to the detriment of ACP and community banana productions."
The proposals suggest lowering the import tariff to €116 (£92) a tonne by 2015, from the current rate of €176. The European Commission has said it will accept the offer.
“Should the proposed tariff cuts be applied as things actually stand, they would deal a lethal blow to the ACP banana industry, and consequently, have an adverse effect on the ACP economies, since this crop constitutes one of the major instruments of development and a powerful factor in the regional integration process and in their fight against poverty,” continued the statement.
“Under the present circumstances, this compromise solution would ruin all the ACP countries’ chances of participating actively in the multilateral trade system, as strongly advocated by the multilateral financial institutions such as the IMF and the World Bank.
“The implementation of this proposal could only call back into question and make redundant the ongoing Economic Partnership Agreements by prompting the ACP states to question the purpose of the Doha round.
“The ACP countries feel that, purely legal considerations apart, it is imperative to search for an equitable solution that takes account of the interests of all the stakeholders.”
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