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6/3/2004 
EU EXECUTIVE MOVES TO END BANANA TRADE DISPUTE  
BRUSSELS, Belgium (AFP): The European Commission proposed Wednesday to negotiate an end to a quota system governing banana imports to the EU that was ruled illegal by the WTO after US protests. But the European Union executive said the system's replacement by customs tariffs would not disadvantage the EU's partners in the Caribbean region. Caribbean countries will enjoy tariff-free access to the EU for their bananas, an important mainstay of some developing countries' economies, under the proposed system. Other banana producers have to pay an average tariff of US$90 per tonne on the fruit, the commission noted in proposing a new negotiating mandate from EU member states to take to the World Trade Organisation. "What will change is the import regime, not the level of protection," EU agriculture commissioner Franz Fischler said, while acknowledging that the proposals could face tough passage at WTO talks. "We will have to square the circle and safeguard the sometimes conflicting interests of our consumers, producers and trading partners," he said in a statement. The quota system, which offers privileged access to European markets for bananas produced in Caribbean countries, was ruled illegal by the WTO in 2000. The Geneva-based organisation deemed the system discriminated against bananas produced by US companies based in Central America. The new proposals by the commission would confer most-favoured-nation trading status on Caribbean banana producers, which Brussels hopes will pass muster at the WTO. EU Trade Commissioner Pascal Lamy said: "We are sending a clear message today: in opening the last phase of the change our banana regime we will fully respect our WTO commitments, while paying particular attention to the situation of [Caribbean] countries and safeguarding the interests of EU producers." Reprinted from Caribbean Net News caribbeannetnews.com
 

 


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EU EXECUTIVE MOVES TO END BANANA TRADE DISPUTE