Banana Wars Flashcards
How many banana’s does Europe consume every year?
2.5 billion tonnes
What are the ‘banana wars’?
Culmination of a six-year trade quarrel between the US and the EU
What were the US complaining about?
That an EU scheme giving banana producers from former colonies in the Caribbean special access to European markets broke free trade rules
What % of Europe’s bananas come from the Caribbean?
7%
How much of EU market do US multinationals take up?
3/4
What did the US do because of their anger?
Filed a complaint against the EU with the WTO and in 1997 won
Since 1975 what has each Caribbean company had?
Quota of bananas, enabling them to sell to Europe as many as they wanted to support
What did the EU hope the quota would do?
Enable the economies of such developing countries to grow independently without depending on overseas aid
Who does the deal protect?
Protects banana farmers in the Caribbean from competition in Latin America whose bananas are cheaper because they are grown on large scale, mechanised plantations run by giant US corporations
What has the US now imposed?
Imposed a retaliatory range of 100% import duties on European products, encompassing everything from Scottish cashmere to French cheese
