The World Trade Organisation has rejected the European Union's planned overhaul of its banana-import rules for the second time this year, claiming that they would deprive Latin American producers of market share.

The latest phase of the nine-year dispute saw the EU return to the WTO last month looking for approval to ramp up import duties on as much as $1.45 billion of Latin American banana imports to 187 euros ($227) a metric ton from 75 euros and eliminate import ceilings. The WTO had already rejected the EU's initial proposal, on August 1, because it would cut market access from countries such as Nicaragua, Costa Rica and Ecuador.

“The proposal has been declared illegal for the second time in three months,'' Dacio Castillo, Honduran ambassador to the Geneva-based WTO, told Bloomberg. “The arbitrator once again found that the EU's huge tariff increase is squarely in violation of its commitments.''

Producers from Ecuador, Panama, Colombia and Costa Rica want the EU to return to its existing system of quotas and the 75 euro-per-ton tariff.

“The current regime could be extended for some time,'' said Eduardo Castillo Pereira, an official at Nicaragua's mission to the WTO.

“Whatever tariff they come out with would have to apply to both ACP and Latin American bananas,'' Castillo said.

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