Source:http://hondurasweekly.com/business/1852-2009-12-15-15-05-38
Author: Honduras Weekly
Original Date of Article [DD.MM.YYYY]:15.12.2009
Contributor:honadmin
he European Union (EU) and the countries of Latin America will sign a major trade agreement in Geneva, Switzerland on Wednesday that will immediately drop European tariffs on bananas from the region from €176 per ton to €148 and then gradually reduce the duties to €114 per ton by the year 2016. The deal will improve the competitiveness of bananas produced by Latin American countries such as Honduras and Ecuador, ending a 16-year old trade dispute, known as the "Banana Wars". EU countries purchase 3.4 million tons of their annual four million tons of banana imports from Latin America.
Owing to the tariffs on bananas from Latin America, bananas from African, Caribbean and Pacific (ACP) countries have been given preferential treatment by Europe, as many of these countries are former European colonies. The World Trade Organization (WTO) has condemned the EU's import regime and has undertaken legal action against the body.
The liberalization of Europe's trade environment vis-a-vis Latin America will negatively affect ACP banana exports to Europe. To compensate, the EU is offering ACP countries some €200 million in what are essentially subsidies. Liberalization, however, will help boost Honduran banana exports, which is one of the country's main revenue generators. Bananas represent approximately 7 percent of the total value of Honduras' exports, estimated at US$6 billion in 2008. Most of Honduras' banana production is controlled by Chiquita Brands International and Dole Food Company.
The Honduran Bank for Production and Housing (Banhprovi) recently earmarked US$11.1 million for independent banana growers in Honduras to boost production. Growers willl have US$3 million in debt relieved. The remaining US$8 million will be used to provide new loans.
Foto-Source-URL:http://hondurasweekly.com/business/1852-2009-12-15-15-05-38
|
 |
