WINFA
PRESS RELEASE
April 12, 2001

WINFA, as a long-standing campaigner for the interests of the farmers of the Caribbean, has always viewed the problems affecting the marketing of Caribbean bananas in Europe as an unfortunate casualty of the "trade war" between the United States of America and the European Union (EU). For that reason, any move to settle the differences which affect banana marketing, is welcomed by WINFA.

It is in this light that WINFA welcomes the announcement of an agreement between the EU and the US to resolve the banana dispute. However in view of the fact that other interests, particularly Latin American, are involved, it would be premature to conclude that we have arrived at an "end to the banana dispute." In fact, subsequent statements by Ecuadorian diplomatic personnel, confirm this view.

As for the announcement itself, it is important that the details of the US/EU agreement be spelt out and studied. On the surface its appears to be an advance on previous positions taken, particularly the odious "first-come-first-served" system. The reservation of the Quota C allocation for producers from Africa, the Caribbean and the Pacific (ACP) is certainly a positive move. However, it is tempered by the fact that not only is the total quota reduced by 100,000 tons, but that amount has been transferred to Latin American production. That can mean more bananas on the market and a further depression of prices.

WINFA is also concerned that there has been no definitive statement as to which period is to be used for historical reference for the allocation of licences. This has been a big bone of contention in the dispute with the Caribbean proposing a reference period when our production was highest.

The banana dispute has undoubtedly affected all sectors of the industry but it is the embattled Caribbean farmer who has suffered most. Our farmers have been battered by depressed prices, frustrated by marketing uncertainties and impoverished by both increasing costs of inputs as well as reduction in credit facilities. It is imperative that a settlement be arrived at as soon as possible, but also that such agreement must reflect the interests of our farmers.

We await the details of the EU/US agreement in order to be able to make a definitive conclusion.