By Timothy E Josling, Timothy G Taylor

In 2001, the ecu and US introduced the tip of a alternate dispute over the sale of bananas into the ecu industry. The allocation of import liscences were chanced on to violate global alternate association principles and to discriminate opposed to providers from Latin America.

This ebook examines the problems surrounding the dispute, specifically: the dependence of small Carribean economies on ecu Banana Markets, the position of the personal area in influencing public coverage, the relation among the banana alternate and the political tensions of the ecu universal Agricultural coverage, the household political impression of banana businesses within the US and the function of the WTO and its payment of exchange disputes.

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Extra resources for Banana wars : the anatomy of a trade dispute

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Among its various elements, it also opened up the Portuguese market to imports, though under a tight quota regime. After EU accession, the regime was modified, but was allowed to continue under the transitional arrangements regulating Portugal’s EU accession. A global quota was established, with a minimum share reserved for Madeira. The quota was increased rapidly on an annual basis, to four times its 1987 level by 1991. Price and margins along the whole marketing chain were fixed under the market regime.

Before the Second World War, bananas gradually had become a tropical product of interest to German consumers, considered a healthy food in particular for small children and people suffering from certain diseases, but also as an interesting addition to the choice of domestic fruit. During the war, banana imports into Germany ceased. After the war, however, with the German Economic Miracle unfolding in the 1950s and hence with growing purchasing power for imports from the rest of the world, bananas again began to be of much interest to German consumers.

For the first 12 months of the COMB, the European Commission reported a licence price between US$3 and US$5 per 18 kg box (US$165–265 t−1) (European Commission, 1994). In the following period until the summer of 1995, licences reportedly changed hands for a price ranging uniformly across the EU from US$4 to US$7 per box (US$220–385 t−1) (CIRAD/NRI, cited in Verissimo, 2001). Verissimo has estimated a time series of licence values, adapted in Fig. 3, which is well in line with that sporadic information.

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