Stiffer Competition Ahead for African and Caribbean Banana Producers

www.acp-eucourier.info


16/12/2009 - By Debra Percival

The longest running global trade dispute in history - over bananas – may well have have been brought to an end with the deal done at a meeting 15 December at the World Trade Organisation (WTO) in Geneva between ambassadors from the EU and Latin American countries. But for African and Caribbean nations who export to the EU market duty and quota-free under separate trade agreements, stiffer competition lies ahead with Latin American banana producers.

The core of the EU-Latin America deal, which is seen as a boost for the Doha Round of world trade talks, is a gradual reduction by the EU of its import tariff on bananas from Latin America from €176 per tonnes presently to €114 by 2017 at the earliest. The EU has agreed to immediately cut its tariff by €28 per tonne to €148 on the signing of the deal by all parties. This has triggered the United States to settle its related trade dispute with the EU.

“This is the best possible deal we could achieve. It reconciles all parties’ legitimate interests. I know ACP producers will face challenges in adjusting to the new situation. But the EU will do its best to help. With a more stable environment, all stakeholders will be able to focus more on the improvement of production conditions in banana supply chains,” said EU Development Commissioner, Karel De Gucht.

As compensation, the EU says that it will offer funding of up to €200M to help the main African and Caribbean exporting countries to adjust. They include several small islands Caribbean countries who still rely on bananas for a big part of their income including; Dominica, St Lucia and St. Vincent and the Grenadines who have already paired back their production in recent years because of tougher competition from Latin American exporters.

African and Caribbean banana exporters to the EU remain concerned that any cut in the EU tariff makes Latin American bananas cheaper in the EU market, thereby reducing demand for their own bananas which are more costly to produce.

Further, under the deal done, the EU has guaranteed that it will not cut its banana tariff any further in the current Doha Round of WTO talks. EU member states still have to sign the agreement reached. Under the EU’s newly-ratified Lisbon Treaty, the European Parliament must give also give its consent.

For more information:

http://europa.eu/rapid/pressReleasesAction.do?reference=IP/09/1938

http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/09/557

Banana wars: the fruits of world trade

By Nigel Cassidy
Europe business reporter, BBC News, Brussels


Bananas are one of the world's favourite fruits, a staple of almost everyone's supermarket shopping. Europeans munched their way through 5.4 million tonnes of them in 2008.

Yet the way bananas are grown by often poor workers in hot places and sold to richer consumers in colder countries tells us a lot about the nature of world trade today.

The eventual "initialling" in Geneva of a stand-alone banana trade agreement between the European Union and Latin American countries not only ends what the EU itself acknowledges was "the longest trade dispute in history", it also breaks one of the many stalemates in the stalled Doha round of world trade talks.

The first shots were fired in the banana wars decades before Latin America and the African, Caribbean and Pacific (ACP) trade negotiators set out their respective stalls at the current World Trade Organisation in Geneva.

Frozen out
Since 1975, each Caribbean country has been given a generous import quota for bananas. The idea was to enable the economies of former European colonies or dependencies to grow independently without recourse to overseas aid.

Tariff-free entry to the EU was extended to a string of ACP countries. Meanwhile, banana producers on Spain's Canary Islands and in the French overseas departments of Martinique and Guadeloupe also enjoyed tariff-free status.

But the effect of the agreement was to freeze out competitors from Latin America, or at least make their EU imports more expensive.
So called "dollar" bananas are generally cheaper to start with because they are grown on larger mechanised plantations run by giant US corporations such as Chiquita, Dole and Del Monte.

Eurobananas
Not everyone in the EU was happy with the Brussels banana regime; Germany for one. For a start, the country had lost all its colonies after World War I, so had no favoured supplier to champion.

In the 1990s, German Chancellor Helmut Kohl pledged to try and get the EU import regulations liberalised. His election campaign played on the simple fact that Germans seemed to prefer the larger bright yellow dollar bananas from Latin America.

Some turned up their noses at the smaller, paler "eurobananas".
Bananas have mattered to Germans ever since hunger overtook war-torn Germany, the fruit symbolised luxury.

When the Berlin wall crumbled, jubilant East Germans were seen sporting car stickers featuring two bananas forming the letter D for Deutschland. The banana was a symbol of better times to come.

Soaring prices
Certainly one of the dire predictions about the likely impact of the EU's banana policies bore fruit. Prices soared 63% in 1994 and demand fell by a quarter.

For some the banana became the symbol of the EU's hypocritical refusal to act on its own free-trade rhetoric. Yet now the EU is starting to phase out its tariff "banana split", there will be be others who complain that desperately poor family farmers will be disadvantaged at the expense of wealthy American-owned agribusinesses.

Meanwhile, the banana will doubtless continue to feature in jokes about its curvature, or its uncanny ability to trip up their canniest trade negotiator. But, as banana specialist and writer Peter Chapman once wrote, nobody laughs at the banana in its areas of origin: "It is too serious a business, on which jobs and lives depend."


http://news.bbc.co.uk/2/hi/business/8413979.stm

THIRD ACP CIVIL SOCIETY FORUM ESTABLISHES ACP INFORMATION AND DIALOGUE NETWORK

Left: Mr. Lawman Lynch, 3rd Chairman of the ACP Civil Society Forum





Below: Dr. Natallie Corrie-Kordas and Sir John Kaputin, Secretary General of ACP













By Joyce van Genderen-Naar

On 10 and 11 December 2009 the 3rd ACP Civil Society Forum was held at the ACP House in Brussels. Representatives from Africa, Caribbean and Pacific (ACP) Civil Society came together to discuss how to move forward after many years of silence and inactivity under the Cotonou Agreement.

In 1997 the Forum was established by ACP Civil Society organizations from the ACP regions in Entebbe, Uganda with the aim to provide a platform for civil society actors in the ACP countries, where they could articulate views and concerns, share information and facilitate dialogue with official ACP-EU institutions in order to support and strengthen the participation of ACP Civil Society in the ACP-EU development cooperation.

The follow up was an impressive and unique Conference on the Participation of Civil Society in the implementation of the Cotonou Agreement, organised in July 2001 by the Belgian EU Presidency and the ACP Secretariat in Brussels. For almost a week, from July 2nd – 7th 2001, more than 150 representatives of ACP civil society came together in Brussels to discuss their role in the ACP-EC cooperation and the ACP-EC-Agreement, signed by the EC and the ACP countries a year before in Cotonou on 23 June 2000.

This was the first ACP Civil Society Forum. A Plan of Action was adopted. However, between 2001 and 2006 there was no follow up and no implementation. Only in 2006 the 2nd ACP Civil Society Forum was organised. During a 4-day meeting in April 2006 at the ACP Secretariat in Brussels a Declaration and Plan of Action was adopted, and never implemented during the years to follow.

The participants of the 3rd ACP Civil Society Forum, a two day meeting in Brussels, organised three years after the second one, concluded that the remaining 10 years should not be wasted, being aware that the Cotonou Agreement will expire in 2020. They decided to create a network for the exchange and sharing of information and dialogue through internet and any other appropriate media, connecting Civil Society organizations and their focal points in 79 countries in Africa, the Caribbean and the Pacific. They agreed upon a coordinator for each of the six ACP regions: four in Africa, one in the Caribbean and one in the Pacific. According to the ACP rotation system the Caribbean chaired the 3rd ACP Civil Society Forum and appointed Mr. Lawman Lynch (Jamaica). In 2006 the Chair of the 2nd ACP Civil Society Forum came from Africa (Cote d’Ivoire) and the next Chair will be from the Pacific.

The Secretary-General, Sir John Kaputin, opening the 3rd ACP Civil Society Meeting in Brussels, urged the participants to make the most of this all-ACP platform of stock-taking, policy dialogue and planning. He said that a high priority for Civil Society at the national, regional and all-ACP levels, is the aspiration to be involved in the consultation in the Programming, Implementation of National and Regional Indicative Programmes and all-ACP Programmes, consultation in the Mid-Term Review process of the Country Strategy Papers and the National and Regional Indicative Programmes; consultation in the review of the Cotonou Agreement (which is taking place now); the negotiation and Follow- Up of the Economic Partnership Agreements and the impact of the current Financial Crisis.
He encouraged the participants to exchange views evaluating the types of consultations that target the existing wide range of Non-State Actor Organisations, and to discuss and agree amongst themselves on the most appropriate working mechanisms for future cooperation at the national, regional and all-ACP levels.

As said before the participants of the 3rd ACP Civil Society Forum agreed upon a virtual network as the most appropriate working mechanisms for future cooperation at the national, regional and all-ACP levels.

Though internet discussions they will deal with the questions raised by the ACP Secretary General Sir John Kaputin, such as: How satisfied are we with our Governments approach to active policy dialogue with the wide range of Civil Society actors? Has significant progress been made, since our last all-ACP discourse, to greater include Civil Society in the consultation processes on Capacity Building needs? Have Civil Society Capacity Building requirement been addressed to facilitate greater involvement in the policy dialogue on issues highlighted in the thematic areas discussed at the last meeting? Are Civil Society stakeholders present at the negotiating table on Economic Partnership Agreements?

Mrs. Dominique DELLICOUR of the EuropeAid cooperation office (AIDCO) of the European Commission made a presentation on the participation of ACP Civil Society in the 9th and 10th European Development Fund (EDF). She gave an overview of the ACP programmes adopted, approved and the budget foreseen (191,6 million Euro for the 10th EDF). She said that there is a strong appeal and push for better and more involvement and engagement of Civil Society and that it is important for Civil Society to seize this momentum and to participate in the regional seminar, planned by AIDCO.F1 in Mali, Africa, in the 1st six months of 2010 in the framework of structured dialogue. She also informed the participants about the EC study on Civil Society participation and urged them to read this. The study is available on the site: http://ec.europa.eu/europeaid/what/civil-society/index_en.htm

All ACP participants stressed the complexity and bureaucratic procedures of the EC procedures, the problems they experience in dealing with the European Commission, the National and Regional Authorizing Officers. They asked why the EC sees capacity building as the solution of all ACP problems. They even suggested that the EC in its turn needs capacity building too in order to deal with the ACP countries and their population. They made an urgent appeal upon the EC to involve ACP experts, ACP Universities and ACP research institutions for the design, implementation and monitoring of studies, research and capacity building programmes in the ACP countries. The practice followed by the EC to send EU consultants to the ACP countries has not resulted in capacity building nor exchange and transfer of knowledge, in contrary the many reports they wrote are not used and are a waste of time and money.

The second presentation was made by Dr. Stephanie Diakité, International Expert, on the Evidence Based Knowledge Sharing (EBKS) as a tool for Civil Society to influence ACP-EU policy. Once again the participants of the Forum noted that they have enough expertise and experience in the own countries and that nothing new was placed on the table.

Brussels, December 14, 2009
Joyce van Genderen-Naar
Lawyer/journalist
Email: vangenderen@unicall.be