EU Likes U.S. Banana Decision

July 5, 2001

The European Union welcomed the United States' decision earlier this week to suspend the increased customs duties it imposed on certain EU exports in 1999 as a result of a long-running dispute over bananas. The decision means that increased (100% ad valorem) duties now have been reduced to the level of ordinary customs duties on imports of EU products including bath oils, car batteries, bed linen, handbags and wallets.

European Trade Commissioner Pascal Lamy said, 'This is great news for European exporters. A whole cluster of products that had attracted prohibitive duties will once more be available to American consumers at normal prices. We solved this problem, and we showed that we can work together to manage trade disputes in a business-like manner. This is a very good signal at a time when we are working together on launching a New Round of global trade negotiations."

Agriculture Commissioner Franz Fischler added, "I am pleased that a solution has been reached under which these trade restricting sanctions no longer apply. This solution fully preserves the interests of EU producers and consumers as well as those of our ACP and Latin American suppliers."

The United States imposed increased (100% ad valorem) duties on imports of a variety of European products worth US$191.4 million on April 19, 1999 after the World Trade Organization ruled against the EU in a dispute over EU restrictions on banana imports. The United States and the EU agreed on a means of resolving the dispute on April 11 of this year as a result of which the increased duties will now be lifted. Normal rates will apply from now on.