Long-running EU-US banana dispute resolved as agreement is reached on new import regime based on tariff system
The EU will introduce a licensing system based on historical trade patterns from 1 July 2001 at which time the US will suspend trade sanctions. The EU will adjust quota quantities in order to expand market access for Latin American countries whilst securing market share for a specific quantity of bananas from ACP countries. Once these changes receive WTO approval, sanctions will be lifted permanently. The new tariff-based system for managing banana imports to the EU is scheduled for introduction on 1 January 2006.
The resolution of the banana dispute so soon after the arrival of the new US administration will give a boost to transatlantic trade relations. However, there are still several outstanding trade disputes, including hormone beef and foreign sales corporations.