The longest trade dispute in EU history, known as the “Banana Wars”, has ended. Ambassadors from the EU and Latin American countries today agreed to end a dispute over the EU’s banana imports which has lasted for more than 15 years.
As part of the deal, the EU will:
- cut its import tariff on bananas – the EU will do so in stages, from the current rate of €176/tonne to €114/tonne in 2017, at the earliest; and
- make the biggest cut first – the EU will first cut its tariff by €28/tonne to €148/per tonne, once all parties sign the deal.
In return, Latin American countries will:
- not demand further cuts – the EU will not cut its tariff further once the Doha Round of talks on global trade resumes; and
- drop cases against the EU – Latin American producers will settle several legal disputes pending against the EU at the WTO; some date back as far as 1993.