By Timothy E Josling, Timothy G Taylor
In 2001, the ecu and US introduced the tip of a alternate dispute over the sale of bananas into the european marketplace. The allocation of import liscences have been stumbled on to violate international alternate association ideas and to discriminate opposed to providers from Latin America.
This publication examines the problems surrounding the dispute, specifically: the dependence of small Carribean economies on eu Banana Markets, the position of the personal area in influencing public coverage, the relation among the banana exchange and the political tensions of the european universal Agricultural coverage, the family political effect of banana businesses within the US and the function of the WTO and its cost of exchange disputes.
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Additional resources for Banana wars : the anatomy of a trade dispute
Thus both types of banana camps 5 The position of Ireland, though, was not always considered ‘liberal’ by other EU member countries, as it was also influenced by the commercial interest of Fyffes, a company strongly involved in ACP banana trade and interested in expanding business in other parts of the EU. See following section. vp Friday, February 14, 2003 2:28:02 PM Color profile: Disabled Composite Default screen European Interests in the Banana Market 25 in the EU, the liberals and the protectionists, gained new members.
The Benelux countries, rather like Germany, did not have any producer interests in the banana sector. On the contrary, because of the importance for EU banana imports of the large ports, mainly in Belgium (Antwerp and Zeebrugge), and to a lesser extent in the Netherlands, these countries were interested in a liberal import regime. However, unlike Germany, they applied a CET of 20% to banana imports, with the exception of imports from the ACP. However, as with Germany, their imports came nearly exclusively from countries in the dollar zone.
Given the company-specific trading relations with different sources of bananas, the new regime, interfering directly with banana imports from different origins, was bound to affect the commercial operations of banana marketers. The TRQ on dollar bananas constrained the volume of business of the companies concerned, or at least plans for expansion. Most important, the licences issued under the TRQs were bound to carry rents, and hence to have a very direct impact on company profits. The complex structure of the regime finally established for allocating licences reflects the difficulties in finding an ‘appropriate’ solution to these issues at the company level.
Banana wars : the anatomy of a trade dispute by Timothy E Josling, Timothy G Taylor