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Conflicts Between Different Economical Blocks

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Brussels, 15 December 2009

The EU-Latin America Bananas Agreement Questions and Answers
What have the EU and Latin American (LA) countries agreed? The EU will: • cut its MFN import tariff on bananas in eight stages, from the current rate of €176/tonne to €114/tonne in 2017 at the earliest; and • make the biggest cut first, by €28/tonne to €148/per tonne, once all parties sign the deal. In return, Latin American countries will: • not demand further cuts in the framework of the Doha Round of talks on global trade once it resumes; • settle several legal disputes pending against the EU at the WTO, some dating back as far as 1993. 1. EU tariff cuts When all parties sign the agreement, the EU will make the first cut to its banana tariff, to €148 per tonne. This will apply retroactively from the date when all parties initialled the agreement. The tariff will then fall again at the start of each year for seven years, in annual instalments (€143, €136, €132, €127, €122, €117, €114), starting on 1 January, 2011. The EU will freeze its cuts for up to two years if WTO members do not conclude talks on agriculture in the Doha Round by the end of 2013. For more details, see below. 2. Latin American dispute settlement Once the WTO certifies the EU's new tariff schedule, Latin American banana-supplying countries will drop: • all their disputes on bananas with the EU at the WTO; and • any claims they made against the EU after new member countries joined the Union, or when the EU changed its bananas tariff in 2006. Why is this deal so important? The disputes on bananas have lasted for more than 20 years. They have destabilised the climate for production and trade in the countries concerned. This agreement is a stable solution in the interest of all parties. Furthermore, the agreement will help pave the way for a successful Doha Round.

What was the origin of the disputes at the

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