The U.S.-European Union Banana Dispute (CRS Report for Congress)
| Release Date |
Dec. 11, 2001 |
| Report Number |
RS20130 |
| Report Type |
Report |
| Authors |
Charles E. Hanrahan, Resources, Science, and Industry Division |
| Source Agency |
Congressional Research Service |
Summary:
The United States and the European Union (EU) reached an agreement in April 2001 that
resolved
a long-standing dispute over the EU's rules for importing bananas. Objections to the agreement by
other banana exporting countries, such as Ecuador and Caribbean banana exporters, have been
withdrawn. The U.S.-EU banana agreement provides for a transition to a tariff-only system of
imports in 2006. In the meantime, the EU will establish quotas and a licensing system based on
historical trade shares that should increase the prospects for Latin American banana imports in the
EU market, especially bananas marketed by U.S. firms like Chiquita Brands International. In
November 2001, the WTO granted waivers of WTO rules allowing the EU to continue preferential
treatment for banana exports of developing countries that are former EU member country colonies.
These waivers paved the way for full implementation of the agreement by January 2002. Trade policy
officials on both sides of the Atlantic expressed hopes that the banana agreement would contribute
to a climate for resolving other thorny trade disputes and for bilateral and multilateral cooperation.
Members and committees of the 107th Congress will be monitoring implementation of the agreement
and its effects on U.S-EU trade relations.
