LONDON, Nov 18 — An end to the world’s longest-running trade dispute, involving bananas, is in sight and could lead to lower prices for shoppers, according to a draft settlement seen by the Financial Times.
A proposed deal with European and Latin American trade officials calls for the European Union to cut duties on bananas and dozens of other tropical products, the newspaper reported. The settlement could be signed as early as this week, people familiar with the talks said.
The groups are confident the same terms would win support in the United States, with which talks are ongoing.
The “banana wars” date back to 1993 and have been the source of recriminations among the main parties and within the 27-member EU.
The proposed settlement could also boost the Doha round of world trade negotiations by ironing out tariffs for dozens of tropical products, according to European officials. And it could clear the way for the EU to finalise free trade agreements with countries in Central and South America, the Financial Times reported.
The dispute stems from an EU policy to grant preferential access to bananas from former British and French colonies in Africa, the Caribbean and Pacific region (ACP) that raised trade complaints from Latin American exporters.
The proposed settlement calls for the EU to reduce its banana tariffs from the current 176 euros (RM882) per tonne to 114 euros, dismantling much of the ACP countries’ advantage. Once the agreement was signed the tariff would fall to 148 euros and then fall steadily over seven years. — Reuters
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