Latin American banana producing nations have formally asked the World Trade Organisation for arbitration in their row with the EU over the new banana import regime due to come into force next year.
The governments of leading producers Ecuador, Colombia, Costa Rica, Guatemala, Panama and Honduras have all written to the WTO and will now wait on the organisation to appoint an arbitrator within 30 days. The arbitration process does not preclude the parties in dispute continuing to try and find a solution themselves, but once appointed the arbitrator has 90 days to issue a decision.
Under the terms of the process, the EU will have to explain to the arbitrator how it arrived at its proposed duty of euro230 a tonne for the dollar producers.
The EU is disappointed that the dispute with the exporting countries has gone this far. "While the EU regrets the decision of these WTO members to request arbitration, it will defend its proposal before the arbitrator and remains open for constructive engagement with interested WTO members," EU farm commissioner Mariann Fischer Boel said in a statement.
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