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Banana war

(Photo: www.culinspiration.files.wordpress.com)

An old trade dispute between the US and the EU over taxes on the import of bananas.
The EU wanted to protect banana production in the EU and some former colonies against imports grown on US-owned plantations in Colombia, Costa Rica, Nicaragua and Venezuela by fixing import quotas.

In 1993, the EU introduced protection of its own banana production. The prices in the EU subsequently rose by more than 40%. The WTO decided that European protection of own banana production was in contravention of free trade rules. The EU was forced either to change the regulation or pay compensation. In 2001, the USA and EU reached a compromise. From 1^st July 2001 the import quota for “dollars bananas” was increased by 100,000 tonnes to 2,653,000 tonnes.

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