By Timothy E Josling, Timothy G Taylor
In 2001, the european and US introduced the tip of a alternate dispute over the sale of bananas into the european industry. The allocation of import liscences have been chanced on to violate global alternate association principles and to discriminate opposed to providers from Latin America.
This e-book examines the problems surrounding the dispute, specifically: the dependence of small Carribean economies on eu Banana Markets, the position of the non-public quarter 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 position of the WTO and its payment of alternate disputes.
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Extra resources for Banana wars : the anatomy of a trade dispute
Germany, which already had lost its former colonies in the First World War, no longer had special economic and political links with developing countries that exported bananas. It also had no overseas territories and, therefore, no producer interests whatsoever in that sector. Hence the natural option for Germany was to be concerned with no more than the interests of consumers and domestic trading companies (some of the latter being closely linked with banana trading companies in the USA). That there could possibly be a more general political alliance of interests among the traditionally protectionist domestic farm lobby in Germany and overseas producers of a tropical commodity obviously did not occur to German politicians at the time.
The difficulty, though, with this strand of argument was that the 20% CET was not considered sufficient, or at least not always sufficient depending on the market situation, to grant the required ‘advantages’ to the ACP countries, nor (always) enough to provide what was considered the necessary protection to EU/DOM producers. vp Friday, February 14, 2003 2:28:04 PM Color profile: Disabled Composite Default screen 32 S. Tangermann that tariff had been bound in the GATT in 1963. 10 A proposal put forward by the French government, to charge a variable levy on imports of dollar bananas (Hallam and Peston, 1997: 8), was not only inconsistent with the EU’s tariff binding, but also ran counter to the aim of tariffication.
In contrast to the situation in France, this rent was not skimmed off by the government, but accrued to the private importers. Licences for the quota for dollar bananas originally were shared by the three large importing companies. Later, in 1989, a second quota for dollar bananas was added to be allocated to independent ripeners. Under the tight regime for imports and domestic marketing, the consumer price for bananas on the UK market was high, in 1991 almost 80% above that in Germany. The following two rounds of EU enlargement brought countries into the Union that had significant producer interests in their own territories.
Banana wars : the anatomy of a trade dispute by Timothy E Josling, Timothy G Taylor