Commission adopts new proposal to end banana dispute

The European Commission endorsed a new proposal to resolve the long lasting trade dispute over its banana regime.

The European Commission endorsed a new proposal to resolve the long lasting trade dispute over its banana regime. Under the new proposal, banana growers in former EU colonies are given more time to adjust to new free market rules, by delaying the elimination of import quotas until after 2006. The EU hopes that the new proposals will end the 'carousel' trade sanctions of the US against European products. The plan still needs approval of the 15 EU member states.

But Latin-American banana exporters are not satisfied with the new "first come first served" (FCFS) system. In a first reaction, the US has also rejected the new EU proposal because it would be in conflict with WTO rules.

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