banana final

8/4/2019 Banana Final

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Banana Trade Between ACP

Countries & EU

ANURADHA YADAV 181

MANISHA GHOSH 186SWETA BISHT 193

NEHA SINGH 201

DUSHYANT PRABHAKAR 196

KAMAL RAJPUT 197


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ACP Countries

African, Caribbean and Pacific Group ofStates (ACP)

African - 48

Caribbean- 16

Pacific - 15

Total - 79


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ACP countries


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ACP Countries

Created by Georgetown Agreement in 1975

Main Objectives

Sustainable Development

Poverty Reduction

Greater integration in World Economy

Signatories of Cotonou agreement with EU

except Cuba


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Some African Countries are.1. South Africa

2. Namibia

3. Angola4. Botswana

5. Republic of Congo

6. Guinea

7. Kenya

8. Tanzania

9. Uganda

10. Ghana

11. Ethiopia

12. Sudan

13. Somalia

14. Zimbabwe15. Nigeria

16. Mali

17. Madagascar

18. Mauritius


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Some Caribbean Countries are...

Trinidad

Bahamas

Barbados

Haiti

Guyana

Jamaica

Saint Lucia

Saint Vincent

Dominica

Windward Islands


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Some Pacific Countries are

Cook Islands

Fiji

Papua New Guinea Soloman Islands


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EU?


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European Union(EU) 27 member states located primarily in Europe.

Economical and Political Union.

Member Countries:

Austria Belgium Bulgaria Cyprus The CzechRepublic Denmark Estonia Finland France

Germany Greece Hungary Ireland Italy LatviaLithuania Luxembourg Malta NetherlandsPoland Portugal Romania Slovakia SloveniaSpain Sweden


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EU

Consumes 4 million tons of bananas per year

and produces only 20% of this amount. The

rest 32,00,000 tons is imported from Latin

America (62-63%) and the ACP countries.

Imports about 1/3rd of all traded bananas.

Same quantity as NA. More than three times

Japan and Russia


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ACP secured unchanged Banana

Protocol in Lome IV

Interest of windward Islands saved by thesupport of Geest & Caribbean Banana ExportersAssociation (CBEA)

ACP/CBEA were able to convince EuropeanParliament and ECOSOC to consider their

position

Close relationship between UK and ACP wondespite opposition from Germany and Belgium


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Prior to 1993

EU banana market characterized by disconnected

nature. Different member states operateddifferent import controls. Some member states

had preferential import regimes.


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Preferential Import Regimes

Import from state preferred nations like

Spain - Canary IslandsPortugal- Madeira

France - Martinique, Guadeloupe and from ACP

states Cameroon and Cote d`IvoireUK- ACP states: Windward Islands, Jamaica,

Belize, Suriname, Ivory Coast and Cameroon

Germany- Latin America-dollar bananas


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Preferential Import Regime cont

Germany- Duty free market

Belgium, Denmark, Ireland, Luxembourg andNetherlands- 20% tariff on all non-ACP

imports.


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Single European Market (SEM)

Different national policies to be replaced by acommon policy.

Power in the hands of union rather than nations

Reflecting national rather than community

interests

Countries seeking banana policy through lobbying

have to go through complex decision making.


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Considerations behind Banana Regime 1993

Commitment under GATT-Liberalization of trade in tropical products

-No rise in average tariffs

Reaffirmation made in Lome IV (1990) of continuedmarket access for ACP banana exporters in Europeanmarket

Protect existing banana producers in France & Spainand supply European Markets with reasonablypriced bananas


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EU and ACP Countries

1950sCaribbean under British Rule-

Unprofitable sugar business in windward islandsreplaced by banana industry.

The relation dates back to 1957 when Treaty of

Rome was signed for the development ofEuropean Development Fund to grant technicaland financial help to the countries which werestill under European rule.

Because of this relation and furtherimprovements of relation with European Uniontill 1993, Caribbean Countries enjoyed from the

TRQ subsidy.


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The 1993 Banana Regime

Established Common Market Organization (CMO)

for bananas.

Duty free access to ACP bananas up to 857,799 tons

to ACP supplying states party to Lome Convention.

Imposed tariff quota on all other banana imports(including additional ACP non-traditional imports) in

excess of this up to 2mt (increased in 1994 to 2.1mt, to 2.2 mt in 1995). Within this quota the tariff fordollar bananas was ECU 100/t but ACP bananasentered duty free.


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Any imports in excess of the 2mt would subject

to tariffs of~ECU 850 pt. for dollar bananas

~ECU 750 pt. for ACP bananas

EC production was covered by internal

mechanism, including deficiency payments up to

their share of the market of 854,000 tons


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EU established a system of license, required byall importers. This was to create an incentive forcompanies to import at higher cost.

Tariff quota was divided, so 66.5% of licensewere allocated to traditional suppliers of Dollar

bananas and 30% to those trading ACP or EUcountries. And remaining 3.5% was for the newcomers.

And it also created a system in which Europeanconsumers were paying high prices for theirbananas.


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After that EU introduced a Special System OfAssistance(SSA), to compensate losses as the

changes in the BR, for ACP countries.

This helped them to improve the quality,

marketing and competitiveness of their bananas.


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European Community(EC)

The EC is the second largest market for bananas.

Banana imports into the EC in 1994-96 was

averaged 3.09 million tons. The main banana

suppliers to the EC market during that periodwere:

Ecuador, Columbia, Costa Rica, Panama,

Cameroon, Cte dIvoire and Jamaica, whichtogether supplied around 75 percent of that

xmarket.


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Current EC Banana Regime

Banana imports divided into three categories:

1. Traditional Imports from the 12 ACP countries.

2. Non- Traditional Imports, which are defined asboth any quantities in excess of traditionalquantities supplied by traditional ACP countriesand any quantities supplied by ACP countries

which are not traditional suppliers of the EC.

3. Imports from the Third Countries(Non ACP

Countries)


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Fair trade

Fair tradean organized social movement andmarket-based approach that aims to helpproducers in developing nations make better

trading conditions and promote sustainability Advocates payment of a higher price to the

producers as well as high social andenvironmental standards.

Focuses in particular on exports fromdeveloping countries, most notably handicrafts,coffee, cocoa, bananas, honey , cotton

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