Banana trade case study Flashcards
How important is trade in bananas?
£10bn a year exported
4th most important food in less developed countries
Most commonly eaten food
How are bananas distributed?
Mainly from LICs from the tropics to HIC’s EU and USA
How have the impacts of TNC’s changed?
decreased from 65% –> 45% from 2002 to now.
TNC’s vertically integrated
What happened in the trade war in 1975?
Lome convention took place and there was special and differential treatment towards former British Colonies.
By 1992 A european market was formed, also the TNC’s complained to WTO about this agreement between the former colonies as they lost out on trade. WTO by 1997 eventually ruled against EU
1999 Clinton administration imposes sanctions on EU which costs them $520,000,000
In Geneva 2009, EU eventually agree to step down tariffs on Latin American bananas
What is race to the bottom?
Downwards pressure on prices
Compete to have the lower wages and environmental conditions
