Banana rift continue between E.U. and LatAm

The European Union (EU) and several Latin American countries continue to be at odds over tariffs levied on bananas.

In April 2008 the World Trade Organization (WTO) upheld a complaint by Ecuador that argued EU taxes on banana importers in the Americas were “excessive and discriminatory”. Since then, the EU has tried to sidestep the WTO’s decision by arguing that no agreement was reached on banana taxes due to the collapse of the Doha round of trade talks.

On Monday the EU added more wood to the fire by proposing to lower its taxes on banana imports from 176 to 114 Euros per ton by 2019, instead of 2016. The reaction from Latin America has been of justified indignation and anger:

"We will not accept the introduction of new elements and renegotiations to arrive at something that is completely different and disadvantageous compared to the balanced agreement concluded on July 27, 2008," Guatemala's ambassador Eduardo Sperisen-Yurt told AFP.

The world's largest banana exporters, Ecuador, Brazil, Colombia, Costa Rica, Guatemala, Honduras, Mexico, Nicaragua, Peru and Venezuela, have all rejected the EU's argument and have threatened sanctions against the bloc.

The deal will not affect former European colonies in the Caribbean who are part of the so-called “ACP countries.” Nations like Belize, the Dominican Republic, and Haiti don’t pay banana tariffs.

Image- AFP
Online Sources- Radio Netherlands, AFP, The Latin Americanist