The European Union (EU) and six Central American countries expressed their satisfaction on May 18 following the conclusion of the negotiations of an Association Agreement that they have described as “balanced,” after both parties had to adjust their positions to reach a trade agreement.
The negotiation ended and some of the last issues to be resolved were the denominations of origin of some European products like Manchego cheese, champagne, whisky, etc.
Regarding bananas, the EU agreed to reduce the tariff from the current 176 Euros per ton to 75 Euros per ton over ten years (the same figure recently offered to Colombia and Peru during the negotiation of the Free Trade Agreement).
Last December’s agreement in Geneva which resolved the historic dispute over the banana tariff for Latin American bananas, proposed to reduce the tariff for the fruit to 114 Euro per ton over ten years which was a sticking point in the negotiations.
During that time the EU could use “temporary measures” to protect banana exports from ACP (Africa, Caribbean and Pacific) countries which enter the European market free of tariffs and of the member state banana producing areas like the Canary Islands.
These measures will consist of increasing the tariff (never above what was agreed in Geneva, about 7 euros per ton, according to communitarian sources,) if Central American banana exports exceed certain limits (different according to each country).
European pundits remarked that they calculated the conditions to be imposed over bananas based on the “best years” for Central American exports.
The European Commission thinks the region will save around 50 million Euros in taxes and dues when exporting bananas to the EU.