Tuesday 03 February 2009, San José, Costa Rica

 
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Costa Rica Expects EU Offer on Bananas Next Month

Costa Rica expects the European Union to make a new offer on bananas next month in an attempt to resolve the world's longest-running trade dispute, Foreign Trade Minister Marco Vinicio Ruiz said on Friday.

Settling the disagreement would end a decades-long dispute that has poisoned relations among dozens of countries and remove an obstacle to an overall deal in the World Trade Organization's Doha round to free up global commerce.

It would also help foster trade ties between Europe and Latin American countries grouped in the Central American Customs Union, which is negotiating a trade deal with Brussels.

"It's been told (said) in this same week that the EU will make an offer, will do something, in February," Ruiz said after arriving in the Swiss ski resort of Davos for the World Economic Forum following talks in Brussels.

"I definitely believe that the EU wants to solve the problem," he said.

Ruiz said officials from Ecuador, the world's biggest banana exporter, had heard the same thing. He met officials from Ecuador during his trip to Brussels.

Costa Rica is the coordinator at the WTO of the tropical products countries, a group of mainly Latin American farm exporters.

The EU's banana import regime offers preferential access to its markets for the African, Caribbean and Pacific (ACP) countries, a large group of mainly poor developing countries that are mostly former European colonies.

Under WTO pressure, Brussels has tried to reform the system, but the Latin American countries say it is still unfair.

The two sides reached a deal on the sidelines of a meeting of ministers last July seeking a breakthrough in the Doha talks.

But the ACP countries and the EU producers in the French Caribbean and Spanish Canary Islands objected to the deal. When the July talks collapsed, the EU walked away, saying it was linked to a Doha agreement.
 
 
 
     
 
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