As a member of the ACP nations (Africa, Caribbean and Pacific), the Dominican Republic and its banana industry will benefit greatly from the increased tariffs agreed upon by the European Union. These tariffs increase the tax on bananas from ?75 per ton to ?230 per ton on fruit coming from non-ACP nations. The measure, as announced last Wednesday, is intended to protect the banana farmers of the ACP region ? most of which are former colonies of the European nations ? from competition from other Latin American nations.
According to Luis Bonilla, the head of Probanano, “The country will not have to pay any tariffs as long as it stays within the [allotted] 650,000 tons per year.”
The former colonies hold 20% of the European market, and the European producers (Spain, Portugal and France) hold another 20%. Latin American producers comprise the remaining 60%, according to EU spokesperson Arancha Gonzalez.
The Dominican Republic is the largest exporter of organically-grown bananas to Europe and exports of all bananas are expected to reach 200,000 boxes per week by the 2005 harvest. The sale of bananas in Europe has been causing bitter disputes for years, however. The major United States fruit harvesters, such as United Brands and Dole, pushed for a WTO decision against the European Community’s discriminatory policies regarding bananas from Latin America. The WTO agreed with the American companies and the US began applying sanctions of US$191 million against the European banana producers. International politics forced a truce in 2001, but Ecuador has said it will go to the World Trade Organization to seek redress.