All is fair in banana war

EU farm commissioner Mariann Fischer Boel said at the WTO conference in Hong Kong this week that the union's new €176 tariff plan for bananas is fair and will not damage Latin American exporters. She told journalists that Europe is not spoiling for a fight on the issue either.

"We have been sending a clear signal to the Latin American countries that we will be willing to continue to negotiate with them," she said.

"Our aim is to maintain fully market access opportunities for both Latin American and ACP suppliers.

"The EU has devoted considerable time this year to getting this right. We believe the tariff of €176/tonne will more than maintain market access for Latin American suppliers to the European market.

"We have also agreed to set up a monitoring system, which will allow us to make changes if needed. Our new system will also provide an equivalent level of preference for ACP suppliers.

"It is crucial that we maintain this balance.

In the meantime, we are more than happy to continue our discussions with the Latin Americans. We always prefer a negotiated solution to dispute settlement."

The comments were made after Panama and Honduras, leaders of the Latin American challenge to the EU's banana policy, demanded consultations with the EU, saying the proposed new tariff goes against WTO rulings and will drive bananas from Latin American developing nations out of the European market.

Meanwhile, banana producers in Costa Rica are 13 per cent down on sales this year compared to last, the national banana corporation Corbana said.

Export values are likely to total just $460million-490m compared to $533m in 2004. One of the main reasons for the decline is the heavy rainfall on the Caribbean coast at the beginning of the year that damaged plantations and forced the closure of packhouses.

Corbana forecasts a 10 per cent recovery for next year based on reduced production as Costa Rica has suffered less hurricane damage this season than many of its neighbours.

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