The European Union Agreed to Cut Import Tariff on Banana

According to Ghana Times, the European Union agreed to sign the agreement to cut import tariff duty on banana, which marked the final settlement of the world longest trade disputes.

The European Union is the world’s biggest banana market. It imported 5. 5 million tons banana in 2008. When the agreements comes into effect, the European Union will lower import tariff rates on banana originated from Latin America to increase competitiveness over those with zero tariff rates originated from non-Canada and Pacific Nations Group, such as Caribbean and Pacific Nations Group. The import duty for banana from Latin America decreased from 176 Euros per ton to 148 Euros per ton and to be lowered once a year in the following seven years until to the minimum of 114 Euros. It is estimated by experts that, the agreement are probably to arouse 12% of consumption price falling of banana in EU market.

Meanwhile ,it will also bring impact on banana industry of non-Canada and Pacific Nations Group, most of whose economy heavily rely on banana production and gain market shares in EU market due to duty-free preferential policy. Thus, the agreement will contain 0.2 billion Euros subsidies to non-Canada and Pacific Nations Group.