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Latest WTO Ruling Could Destroy Windward Islands Banana Industry, Envoy Warns

Posted on: Friday, 11 November 2005, 09:00 CST

Text of report by Caribbean Media Corporation news agency website on 11 November

Brussels: The Windward Islands special envoy on bananas, Edwin Laurent, says the recent World Trade Organization (WTO) ruling against the European Commission['s] proposed banana import tariff could lead to the possible collapse of the industry in the islands.

The Windward Islands grouping comprises Dominica, Grenada, St Lucia and St Vincent and the Grenadines.

The Commission had proposed a single tariff of 187 euros (226 US dollars) per tonne for bananas imported from countries, mainly in Latin America, that enjoy Most Favoured Nation (MFN) status.

It had also proposed a duty-free quota of 775,000 tonnes for bananas from the African Caribbean and Pacific (ACP) states as from 1 January 2006.

In a statement issued here, Laurent said that the WTO arbitrator ruled that the EC proposal would not maintain market access for the Latin American exporters.

"This ruling exposes the trade in bananas from the African Caribbean and Pacific group of countries (the ACP) to new uncertainties and many of their industries would collapse almost immediately".

Laurent warned that if a solution is not found, "the consequences for the Windward Islands would be particularly serious, since they rely on bananas for the major portion of their income and employment".

"But successful exportation and sale of their bananas produced on small family-holdings is only possible because of the trade preferences provided by Europe. These preferences harm no one and the islands have no desire or ability to damage the trading interests of Latin American or indeed any other exporter."

Laurent said despite the ruling, most suppliers in Latin America, the trade union movement and the importers in Europe recognize that they can be hurt by the destabilization of the market and loss of income should Europe be flooded as a result of attempts to sell more bananas.

"They consider that the best approach would be to postpone the single tariff, pending negotiation and agreement on a fair and equitable solution that will permit all suppliers to continue to trade."

"Now is the time for all parties to work together in ensuring that the legitimate interests of banana producers everywhere will be safeguarded and market stability maintained," Laurent said.

St Vincent and the Grenadines Prime Minister Dr Ralph Gonsalves, who has responsibility for the banana industry within the Caribbean Community (Caricom), said he was now working with his regional colleagues to implement an appropriate strategy to protect and defend the banana interests.

"Windward Islands will therefore be working with renewed vigour, within Caricom, with the ACP, the Latin Americans and the Europeans to ensure that the legitimate interests of banana producers everywhere will be safeguarded and market stability maintained," Gonsalves said in a statement.

Gonsalves warned "unless a solution is found within the coming weeks, the consequences for the Windward Islands would be particularly serious, since they rely on preferences for successful exportation and sale of their bananas".

Source: BBC Monitoring Americas

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