EU pledges €190M for African and Caribbean banana producers

The European Commission announced March 17 a €190 million support package for African and Caribbean banana exporters of the African, Caribbean and Pacific (ACP) group of states.

Beneficiaries are those likely to lose the most as a result of the December 2009 Geneva Agreement on Trade in Bananas involving a reduction in tariffs on Latin American bananas exported to the European Union 27 member states.

The European Commission says its measures will help African and Caribbean banana exporters of the African, Caribbean and Pacific group adjust to this new trading environment, taking into account each country's specific situation.

Funds will focus on boosting the banana sector's competitiveness, promoting economic diversification and addressing the broader social, economic and environmental issues of banana production in African and Caribbean states.Belize, Cameroon, Côte d'Ivoire, Dominica, Dominican Republic, Ghana, Jamaica, Saint Lucia, Saint Vincent and the Grenadines and Suriname are expected to be the main beneficiaries.

New realities

"These measures will help ACP countries to adapt to the new realities of the banana trade regime. The Commission has committed itself to fully stand by ACP countries to foster their efficient integration into the world economy while respecting international trade rules. This package delivers on that commitment," said EU Development Commissioner, Andris Piebalgs, and 17 March.

Fellow European Commissioner for Trade, Karel De Gucht said: "The Geneva Agreement on bananas achieved the best possible outcome for all involved. It guarantees ACP producers' preferential access to the EU market. It settles long-running trade disputes, bringing stability to the bananas industry, which potential investors look for. And today the Commission has fulfilled its pledge to propose substantial financial aid to help ACP banana-exporting countries adjust."

In December 2009, the EU agreed to gradually cut its import tariff on bananas from Latin America from €176 per tonne to €114. In response, the US agreed to settle its related WTO dispute with the EU.

Eastern Caribbean banana exporters remain worried: “Lowering the tariffs means that they [Latin American countries] can market their bananas even more cheaply than us thereby forcing our producers out of business”, said Renwick Rose, Secretary General of the Windwards Islands Farmers’ Association representing St.Vincent, and the Grenadines, St.Lucia and Dominica.

“The actual measures will be country-specific, identified and prepared by ACP countries in coordination with the EU within wider agriculture and development strategies,” reads an EU statement on the new funding package.

It adds that ACP banana exporting countries will continue to enjoy duty-and quota-free access to the EU under the Economic Partnership Agreements (EPAs).

Full text of the Communication and Proposal for regulation:
http://ec.europa.eu/development/services/dev-policy-proposals_en.cfm