The European Union has offered a new proposal to four Latin American countries to try and avoid legal action by them against its banana import regime before the WTO. The offer was made early this week as the Doha round of trade talks at the WTO in Geneva collapsed, leaving many in Latin America dismayed.
The EU banana offer has been made to Ecuador, Colombia, Guatemala and Costa Rica and suggests a potential gradual 20 per cent reduction in the e176 a tonne tariff. Ecuadorian farm minister Pablo Rizzo has said his government is still considering its position and has not ruled out taking the EU to a WTO disputes panel. Honduras, Nicaragua and Panama have already made such a move.
Meanwhile, the collapse of the Doha round talks spells gloom for Latin American farmers and growers, their representatives have said.
Mexican observers said that the failure of dialogue and the maintenance of subsidies and difficult market access act as a “demotivating” factor for the developing countries and place a question mark over the commitment of the US and EU to the issue.
Other countries such as Argentina have said a return to negotiation will only be valid if the issues of reducing subsidies and tariffs are on the table.
But on the positive side, China is increasing its imports and some Latin American countries such as Chile already have free-trade pacts negotiated with the EU, and one with China awaiting senate approval. Meanwhile, Mexico has an agreement with Japan.
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