Geneva, February 26:
European restrictions on banana imports will face a new challenge at the World Trade Organisation next month when Ecuador asks the group to restart a decade-old dispute over what Latin American countries and the United States have previously argued amounts to unfair trade discrimination, officials said Monday.
The WTO has consistently ruled against how the European Union sets tariffs for bananas, forcing the bloc to overhaul a system that grants preferential conditions for producers from African and Caribbean countries, mainly former British and French colonies.
Latin American producers and banana companies based in the United States have long complained that the European Union rules favor Caribbean and African producers.
The United States, in 1999, and Ecuador a year later both won the right to impose trade sanctions on European goods after the WTO found the EUâ€™s rules to be illegal.
Brussels, however, says a new banana tariff established last year â€” euro176 ($231) per ton â€” has brought it into compliance with WTO rulings. Ecuador, the worldâ€™s largest banana producer, asked the European Union for consultations in November, and will ask for a formal investigation when the WTOâ€™s dispute settlement body meets on March 8, according to an advisory sent Monday to the organizationâ€™s 150 members.
â€œAs far as we are concerned, we have done what we needed to do,â€ said Michael Mann, a spokesman for EU Agriculture Commissioner Mariann Fischer Boel. Mann rejected Ecuadorâ€™s claim, citing figures that the EU had imported more bananas last year from the South American country. â€œAny idea that they are kept out of the European market is just not true,â€ he told The Associated Press.
Ecuadorâ€™s mission to the WTO said it could not immediately comment.