Banana Trafe - Issuss Flashcards
How long did banana dispute last ?
20 years from 1992 - 2009
Until Geneva banana agreement was reached.
Why did dispute start ?
When EU economies negotiated trade agreements with former Europeans colonies.
Agreement = Lomé convention made with banana producing countries.
What were given to European colonies?
Special and differential treatment.
Tariff free important quotas.
To develop independently
What was the point of the deal ?
Protect smaller family run farms in Caribbean and Africa from competition with large Latin American producers.
At the time how much were Latin American supply as well as Caribbean suppliers?
Latin America - 75% of EU market.
Caribbean - 7%
What happened in 1992?
TNCs filled a complaint to the WTO that the EU practice was unfair trade.
What happened in 1997?
WTO rules against EU and Lomé convention to cease discrimination .
Why did USA get involved with EU?
Put under pressure from TNCs.
Imposed WTO approved Sanctions on EU products
When was a compromised reached?
2009 the Geneva banana agreement.
Eu agreed to reduce tariffs on Latin American bananas - ratified in 2012
why are there still concerns for the ACP producers?
Not able to compete.
