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Words: | Submitted: Mon Jun 19 2006
... ties with ex British and French colonies. They were bound by the Lome convention which gave preference to bananas grown in ACP countries. The US objected to the European quota systems and saw it as discriminatory to their interests. The problem US had was they wanted their 'Dollar' banana to have better access to the EU market. The US was mainly involved with the dispute because of trans-national companies like Chiquita's involvement in the US and because this company was willing and able to donate money to the US democrats at the same time they filed a complaint to the WTO regarding the opening of the EU market to Latin American dollar bananas. The US applied a 100% tax duty on certain products imported from the EU because they felt this was unfair trade and gave MFN's (most favoured nations) unfair competitive advantage. In accordance to the WTO regulations the EU ...
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