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

Costa Rica Opens Walk-In Motorcycle Road Tests Without Appointments

If you've passed your motorcycle theory test and can't find a road-test appointment, you don't need one this week. Through Friday, Oct. 30, you...

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 Begins New Prison Transfer Phase as CACCO Opens to Inmates

Costa Rica was scheduled to begin moving prisoners into its new maximum-security facility today, marking the next step in the government's effort to tighten...

Francisco Cerundolo Reaches Brussels Quarterfinals With Win Over Martin Damm

Argentina’s Francisco Cerundolo advanced to the European Open quarterfinals yesterday, beating American Martin Damm 6-4, 7-6 (4) to set up a meeting with French...

More Than 2,000 Caught Entering Costa Rica Parks Illegally

Over 2,000 people were caught entering Costa Rica national parks illegally in three years. A new seal now targets tour transport.

Harry Kane Wins the Ballon d’Or, England’s First Winner in 25 Years

Harry Kane won the 2026 Ballon d'Or in London after a 73-goal season for Bayern Munich and England, becoming the first English winner since 2001.

Costa Rica Coffee Income Falls 30% as the Strong Colón Bites

Costa Rica’s coffee producers have seen their income fall by close to 30%, according to the Costa Rican Coffee Institute (Icafé), as a persistently...

Costa Rica Offers Walk-In Immigration Fingerprinting in San José Today

Costa Rica is offering a special fingerprinting service in downtown San José this morning, giving foreign residents and immigration applicants an opportunity to complete...

Ruling Party Files Bill That Would Let Rodrigo Chaves Run Again in 2030

Legislators from Costa Rica's ruling Pueblo Soberano party filed a constitutional reform on Tuesday that would allow presidents to serve consecutive terms. Its backers...
Loading…

Latest News from Costa Rica

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