In a ruling that could further affect Caribbean bananas, the World Trade Organization (WTO) has supported a United States (US) complaint that the European Union (EU) had ignored several rulings to terminate restrictions on bananas from Latin America.
As a result, the US may impose sanctions against the EU in light of the confidential ruling made late last week and confirmed by US and EU officials.

The EU affirmed that it can impose zero duty on African and Caribbean bananas while charging US$255 per tonne on shipments from Latin America. The US is supporting American conglomerates, Chiquita Brands International Inc. and Dole Food Co., growers and exporters of bananas from Latin America. Ecuador, one of the claimants against the EU, said that the EU is yet to comply with previous WTO judgments dating back to 1995.

At that time, the EU said it would convert to a tariff-only regime for bananas by 1 Jan., 2006 on the condition that the US drops US$191 million in sanctions for EU goods.
"The United States prevailed in its challenge", the Office of the US Trade Representative in a statement, reacting to the latest WTO ruling said. "This is the 10th proceeding against the EU. We hope that the EU will finally ensure that it puts in place a bananas import regime that is WTO consistent", it said.