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Chiquita Brands International

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Q1] in 1994, Keith Lindner has some problems. What are they ?
A1] Chiquita brand was the leading company in the banana sector which had capture the global market. Chiquita was under a mist of serious and unprecedented downturn there income became less and there shares too in 1991 its was 40$ and in 1994 it came down to 13.63$ the reason was that the EU started a series of import restriction and EU completion of its single market and member states also adopted and this topple Chiquita from its leading position in the banana market and the EU import was effective on the 1993 july 1 and ended in 1994 by then the Chiquita market shares in the Europe slided significantly.

Q2] exactly what is the EU policy ?
A2] in the 1975 with the adoption of the APC-EEC convention of Lome most member of the EC provided preferential access to banana imports from developing countries in the APC region (Africa, Caribbean, and the pacific), which were essentially the former colonies of britain and france were granted tariff-free access to the EC market, while banana imports from other regions including latin America, faced a variety of restraints that differed widely across each of the countries in the community. Imports from EC territories like ( Martinique, Guadeloupe, canary islands, crete and madeira ) like imports from ACP countries were given duty-free access to all the markets with the community.

Q3] and how does it promise to affected Chiquita ?
A3] Chiquita had watched the formation of the EU’s common import regime with mounting indignation but took particular offence at the combination of the new banana policy and its framework agreement. This scheme and framework represented a direct threat to Chiquita position in the EU because they were the main player in the banana market. And by placing an artificial cap on the latin American imports which the country had shipped

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