Monday 14 September1992

LATIN BANANA PRODUCERS' TALKS WITH EC FAIL

Geneva Sep 9 (TWN) -- Consultations between the European Community (EC) and banana producing countries in Latin America over the European Community's banana import regime in a unified market have failed, according to the producers.

The Latin American producers are seeking a meeting of the Uruguay Round Surveillance body and are considering moving GATT for the establishment of a panel.

The new EC banana regime, to provide for an EC-wide import quota, replacing the existing varying import regimes of EC member states, is to go into effect early next year as part of its single market regime.

According to Roberto Rojas, Minister of Foreign Trade for Costa Rica, the delegation of four of the producer countries on whose behalf he was speaking are now preparing a formal request to GATT Director-General Arthur Dunkel in his role as Chairman of the Uruguay Round Trade Negotiating Committee (TNC) that he convene a special session of the Surveillance Body to examine the EC move as a violation of the Punta del Este standstill commitment.

The producing countries, at a news conference Wednesday afternoon, indicated that they were also planning to take the issue to the GATT Council and seek establishment of a panel.

Under the GATT procedures, establishment of a panel is now automatic.

Rojas said the producers had not yet agreed on whether to ask the GATT Council to set up a panel at the next meeting of the GATT Council set for 27 September. He said a decision would have to come after consultations among all seven producer countries.

The seven Latin American producers -- Guatemala, Hunduras, Nicaragua, Costa Rica, Panama, Colombia and Ecuador -- are objecting to EC plans to reduce the amount of bananas they are permitted to export to Europe from a current 2.5 million tonnes to 2 million tonnes from January 1st, 1993, when the European single market comes into effect.

In a statement, Rojas called the result of the meeting with the EC Commission "unsatisfactory", adding that "we saw no willingness on the part of the EC to recognise the GATT illegality of the current import regimes of several member states.....We were extremely worried and disappointed by the refusal, ignoring their obligation even to consult formally...."

At present, Rojas pointed out, the Latin American producers export to only six EC countries which allow free imports of bananas. Under the new EC quota, which would be for all 12 EC countries, the allowed imports would drop by some 25 per cent, he said.

"Even though the market gets bigger, our sales get smaller," he said.