No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveWTO Ruling Favors Latin America – Again

WTO Ruling Favors Latin America – Again

THE World Trade Organization(WTO) has ruled for the second time infavor of Latin America in the so-called“banana war” over proposed EuropeanUnion tariffs, finding that the most recentproposal of 187 euros ($225) per metricton of bananas imported from LatinAmerica would not grant Latin Americanproducers the same access they now enjoyunder most favored nation status.Currently, Latin American bananas arecharged 75 euros ($92) per metric ton.“I cannot hide that I feel very, very satisfiedwith this ruling,” Costa Rican TradeMinister Manuel González said at a pressconference Oct. 27 announcing the news.This ruling follows an identical decisionAug. 1 in another WTO arbitration onthe Union’s original proposal of 230 euros($283). The Union proposed the hike aspart of its efforts to make a transition fromits current trade system, which is a combinationof quotas and tariffs and expiresDec. 31, to a tariff-only system. UnderWTO rules, the change cannot be made ifit would affect Latin American producers’market access.LEADERS from banana-producingnations in Latin America have rejected theproposal, saying it would wreak havoc ontheir economies and cause serious socialproblems, and have held a series of summitsto hash out a common strategy fordefending their exports (TT, July 15),which led to taking the issue before theWTO.“What happens now? That is a questionmark,” González said. “I believe thisgives the Latin American countries additionalmuscle, a much more solid platformon which to enter negotiations withthe European Union on what will be theregimen they finally apply.”The ruling is binding under WTOrules; however, the Union could alwaysimpose the 187-euro tariff unilaterally, “orthey could say, ‘187 no, but 186 yes,’”González pointed out. In that case, CostaRica and the other Latin American countrieswould have the option of turning to aWTO panel, a more definitive process butone that would take two to three years andcost Costa Rica a substantial price, theTrade Minister added.A second consequence the Unionwould face if it went ahead with the tariffhike would be that the WTO could revokethe current trade privileges granted tobanana-producing countries referred to asACP (African, Caribbean and Pacific)nations, which include former Europeancolonies. ACP colonies are exemptedunder WTO trade rules from paying tariffson 750,000 tons of bananas exported to theUnion.The Union originally said the tariffhike was designed to favor ACP nations,which would maintain preferentialaccess while Latin American bananasfaced increased tariffs. According toGonzález, a WTO decision to revoke theACP privileges “would put the EuropeanUnion in a difficult position with a groupof countries it has traditionally tried tobenefit.”González said last month that theunderlying reason for the new tariff is E.U.protectionism (TT, Oct. 21).“Spain produces bananas in theCanary Islands and France producesbananas in its colonies of Martinique andGuadalupe,” he told The Tico Times. “Tomask this protectionism, they use as anexcuse the preference for the ACP countries,which are also very poor, but notnecessarily more or less poor than weare.”González said it is still unknown exactlyhow the Union will proceed, andwhether it will consult with Latin America.If an agreement is not reached, he saidCosta Rica will use “any means available”to fight the tariffs, including taking theissue before the WTO Doha Round talksset to take place in Hong Kong inDecember.

Trending Now

El Salvador Slams Paris Fashion Show Inspired by Cecot Mega-Prison Inmates

The president of El Salvador, Nayib Bukele, joked on Saturday that he could send inmates from his mega-prison to France, after they were represented...

Costa Rica’s Eyelash Viper Snake Is One of the Most Beautiful

There are at least 141 different species of snakes in Costa Rica. With that large number of species packed into such a tiny nation,...

Retired Nicaraguan Army Captain Sentenced to 50 Years for Treason

A retired military officer was sentenced to 50 years in prison in Nicaragua for the crime of "treason against the homeland," his family denounced...

Prisma Dental in Costa Rica Keeps Customers Happy and Smiling

I am 81 years old and have had teeth removed, bridges, and cavities fixed several times to sustain my ability to eat and function....

Costa Rica Introduces New ₡500 Coin: Old One No Longer Valid

Visitors to Costa Rica this month should be aware of an important change to the country’s currency. As of Tuesday, July 1, the old...

Fishing, Wildlife, and History in Costa Rica’s Barra del Colorado

Costa Rica’s Barra del Colorado is a magical and charming town. It’s one of the country’s hidden gems, best known for its world-class sport...
Avatar
spot_img
Costa Rica Tours
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica