Geneva - The European Union accepted the decision by the
World Trade Organization's appeals body to once again rule against EU
banana import rules, an EU official said Thursday, adding that full
compliance however would likely only happen along with the
finalization of the Doha Round of trade talks.
'If the ministers meet next month, we can solve the bananas,' said
the official, requesting anonymity.
That amplified a statement made the night before by an EU trade
spokesman following the WTO decision.
'The EU considers the Doha Round to be the right forum to find a
resolution,' said Peter Power.
The WTO ruling given on Wednesday upheld an earlier decision by a
lower body which found that the EU's duty-free tariff quota for
African, Caribbean and Pacific (APC) countries did not comply with
international trade rules.
The complaint against the Europeans was brought by Ecuador which,
like other Latin American countries, doesn't enjoy the special
privileges of the former colonies in APC, and pays taxes on its
banana exports.
Ecuador is one of the leading banana exporters in the world.
The United States also filed a complaint. Though it does not
directly export bananas to the EU, three US-based multinationals
companies, Chiquita, Del Monte and Dole, have plantations in Central
and South America.
US Trade Representative Susan Schwab called for Europe to
'implement a tariff-only regime' for the bananas.
A ministerial meeting in Geneva next month to continue the Doha
Round, which started in 2001, still has not been called, and it will
depend on whether countries can work out their differences enough to
bring together the top-level representatives and reach a deal.
Meanwhile, the EU would continue to negotiate a deal on bananas
with the Latin Americans 'and settle it once and for all,' said an
official.
It remained unclear what sanctions might be used in the event that
the EU did not comply with the ruling.
Pascal Lamy, the head of the WTO, has been pushing for a
ministerial meeting.
Analysts have said a deal on trade would lead to capital
injections into trade markets which would help alleviate some of the
problems the global economy is currently facing, and prevent
protectionism in a time of crisis.
USA
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