Tuesday, April 20, 1999
EU concedes on banana rules
Chiquita head pleased by 1st step
BY NAOMI KOPPEL
The Associated Press
GENEVA — The European Union promised to change its banana import policies after the World Trade Organization approved U.S. sanctions against European products Monday, a victory for Washington in the long-running trade dispute.
The United States says the EU discriminates unfairly against bananas imported from U.S. multinational companies such as Cincinnati's Chiquita Brands International in Latin America and favors those from former European colonies in the Caribbean and Africa. The WTO already had ruled the EU policies illegal.
Steve Warshaw, Chiquita's president and chief operating officer, said Monday it's too early to say what the WTO action and the EU's promise to change its rules might mean to his company, but that it's a positive move.
“Today's steps are very necessary toward achieving reform to the illegal regime,” Mr. Warshaw said. “We are eagerly awaiting the result of a settlement between the EU and United States.”
Mr. Warshaw said if both parties are seriously interested in having the sanctions removed, they should be able to achieve satisfactory results in a relatively short time.
The United States has announced sanctions worth $191.4 million a year, imposing tariffs of up to 100 percent on a list of products including French handbags, German coffeemakers, bed linens, cardboard packing material and felt paper.
Of the American banana companies, Chiquita has been the most affected by European policies that favor bananas grown in former Caribbean and African colonies.
The company has blamed most of its appoximately $450 million in total losses since 1992 on the EU's banana regime. Monday, EU trade ambassador Roderick Abbott said the EU would change its rules to comply with WTO orders.
“We have expressed our intention to comply fully,” Mr. Abbott said. “That is not to say it is going to be easy, because we are consulting with people whose interests are diametrically opposed to each other, but at any rate, we will try.”
Changes in the EU regulations have to be approved by all 15 member states. Mr. Abbott said any changes would probably not come before January and could even be delayed further by upcoming European elections.
Enquirer reporter Jeff McKinney contributed to this report.
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