HomeArchiveBanana Conflict Heads to Hong Kong

Banana Conflict Heads to Hong Kong

IN a decision that Trade MinisterManuel González qualified as “historic” inthe ongoing conflict over Latin Americanbanana exports to Europe, the EuropeanUnion this week made official its plan toeliminate licenses for exporters and set itstariff on Latin American bananas at 176euros ($207) per metric ton.González welcomed the news of theelimination of licenses, saying that itwould allow easier access to the Europeanmarket for producers.“Licenses, which have so distorted themarket and have served to favor smallgroups, are, as of this decision, a cadaverin an overly complicated framework thathas been restricting the entrance of ourbananas into the European market,”González said, noting that the EuropeanUnion receives 50% of Costa Rican bananaexports. Of those exports, 90% are bytransnational companies, and 10% are byindependent companies, he said. However,50% of the bananas produced in Costa Ricaare produced by independent producers.However, González said the tariff istoo high, adding that the issue will be takento the next round of world trade talks to beheld in Hong Kong Dec.13-18.“In the context of the Doha Round of(World Trade Organization) negotiations,and in the context of the negotiations onagriculture in particular, we are going tocontinue to insist on lowering this tariff,”he said.This is the third proposal the EuropeanUnion has made for a new tariff as it preparesfor a transition to a new, tariff-onlytrade system. The current system is a combinationof tariffs and quotas, andexporters must have a license to sell to theEuropean market. The new regimen is setto take effect Jan. 1, 2006.Previously proposed tariffs of 230euros ($225) and 186 euros ($283) permetric ton of bananas were both rejectedby World Trade Organization arbitratorswho said the tariffs would not allow LatinAmerican countries the same access to theEuropean market they currently enjoy (TT,Nov. 4). Latin American banana producersnow pay an import tax of 75 euros ($92)per metric ton of bananas exported to theEuropean Union.Following the second arbitration infavor of Latin America on Oct. 27, theEuropean Commission proposed a tariff of179 euros ($211), but 11 member nationsopposed it. The Union is split betweencountries that support a high tariff on LatinAmerican bananas so as to favor the collectionof banana-producing nationsknown as the African, Caribbean andPacific (ACP) group, which includes manyformer European colonies, and those whowant lower tariffs and lower prices fortheir consumers. The ACP nations currentlyreceive duty-free access to the Europeanmarket, but are limited by a quota.The union of Latin American bananaproducingnations also recently encounteredinternal divisions, after holding multiplesummits on the topic of bananas and declaringtheir unity in the face of European tariffhikes. According to González, the nationswere divided between those who wished tostay with the current system – countries theminister declined to name – and those whowere pushing for a system based only on asingle low tariff, countries that includedCosta Rica, Brazil, Ecuador and Colombia.With the Union’s most recent decision, however,González said, Latin American countriesare once again unified.The new tariff will be monitored by theEuropean Union in the first months of2006, and could be changed depending onthe way it affects the market, according tothe minister.

Trending Now

Quetzal Recorded for the First Time at Little-Known Cartago Refuge

A resplendent quetzal has turned up somewhere few birders would think to look for one. The bird was recorded at La Marta Wildlife Refuge...

Costa Rica Bus Crash Leaves Two Dead and Dozens Injured

Two women died and seven other people were seriously injured Wednesday morning when a passenger bus overturned on Route 4 in Sarapiquí, Heredia, leaving...

Chaves Calls TEC Rector a Terrorist as 417 Limón Students Face Campus Closure

Former president Rodrigo Chaves, who now serves as minister of the Presidency and of Finance, called Costa Rica Institute of Technology (TEC) rector María...

Tamarindo Celebrates Halloween Weekend With Costume Surfing, Parades and Beach Parties

Tamarindo is getting ready for a Halloween weekend that promises everything from surfers riding waves in costumes to trick-or-treating, costume contests, live music and...

Costa Rica’s Children’s Hospital ICU Is Full as Respiratory Viruses Spread

The ICU at Costa Rica's national children's hospital is full, with 18 children on ventilators. Here is how to protect your child.

Costa Rica Hotel Wins Two World Travel Awards, Putting Tárcoles in the Spotlight

A hotel on Costa Rica's Central Pacific coast has won two international tourism awards, bringing attention to Tárcoles, a area known for its crocodile-filled...

Costa Rica Arrests Woman Suspected in Killing of American in Playas del Coco

Costa Rican authorities have arrested a 22-year-old woman suspected of killing an American businessman inside his condominium in Playas del Coco, Guanacaste, bringing an...

Costa Rica Celebrates National Masquerade Day With Traditional Parades and Music

Costa Rica is celebrating one of its most colorful traditions this weekend as giant masks, lively marching bands and characters from local folklore take...

Thieves Emptied a Tourist Rental Car in 8 Minutes in Costa Rica

When you lock your car in Costa Rica, don't assume it is locked. A group of Colombian visitors found that out during a coffee...
Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel