E.U. Commission Outlines Modification of the Import Regime for Bananas

December 26, 2001 - The European Commission welcomed, on 19^th December, E.U Ministers' decision to agree to modify the E.U. import regime for bananas, in order for the U.S. and Ecuador to definitively lift sanctions against the E.U.

The decision will mean that "phase II" of the understandings reached with the U.S. and Ecuador earlier this year, can now be implemented. The sanctions have been suspended since 1^st July 2001. "Phase II" is the second step of the interim period which precedes the application of a tariff only system, due to start on 1^st January 2006 at the latest.

From 1^st January 2002, 100.000 tones will be transferred from the C quota to the B quota (to all suppliers) and the remaining 750.000 tones of the C quota has been reserved for bananas of A.C.P. origin. Other technical modifications are included with relate to the financing of producer organisations, an update of the tariff and statistical nomenclature of the products and new rules on comitology and compensatory aid.

Franz FISCHLER, Commissioner for Agriculture and Rural Development, welcomed the agreement reached in the Council: "I am happy that we can now put this never ending story to rest. This allows us to settle a long running dispute with our trading partners and to see U.S. sanctions on E.U. products definitively lifted. Without doubt, this will relieve the banana sector and is very positive for operators, who can, from now on, work in a clearer and more stable environment."

European Trade Commissioner Pascal LAMY added : "this WTO-compatible system the council has decided upon, signals not only the end of the banana dispute but will result in the lifting of some US$ 200 million worth of U.S. sanctions which is the good new E.U. exporters have been waiting for".

Ambassade de France

auprès des

Etats de l'O.E.C.S.

(en résidence à Sainte-Lucie)

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