EU Reviewing Banana Quotas

BRUSSELS - Mar 8/04 - SNS -- The European Union is reviewing banana import quotas to take into account the increase in the size of the confederation to 25 member states as of May 1.

"To this end, the current import volumes for bananas have to be increased for an EU of 25," the commission stated. "The exact additional volume of bananas will be based on historical imports to the new Member States and is subject to negotiations with our WTO trading partners and hence still to be determined."

The EU intends to maintain its current licensed regime. As it now stands, the EU allows imports of 2.2 million metric tons (MT) of bananas under Quota A at a tariff rate of € 75 per MT&#059; imports of 453,000 MT under Quota B at a tariff of € 75&#059; and 750,000 MT under quota C at zero tariff rate from ACP countries.

Quotas A and B are open to bananas from any origin except ACP countries, the C quota is reserved to ACP countries. Banana imports outside the quotas are subject to a customs duty of € 680 MT however ACP countries benefit from a tariff preference of € 300 MT.

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