US, EU continue to dispute bananas and bio-tech products at WTO

Feb 19, 2009, 15:29 GMT

Geneva - During dispute settlements sessions at the World Trade Organization on Thursday, the United States and European Union continued to argue over tariffs on banana imports and bans on genetically modified foods.

The US alleged that the EU was failing to comply with a judicial body decision on bio-tech products, saying that nine member states had bans in place on the goods which were 'not based on risk assessment,' meaning they were not proven to have negative health consequences or similar concerns.

Specifically, Austria came under fire for its ban on insect-resistant maize, a boycott that the US said has spread to other EU countries in spite of the product being safe.

The European Commission said its relevant bodies were discussing the issues, and since the bio-tech question were first raised several years back it has authorized about 20 products. It said it believe the appropriate way forward was through dialogue.

Also, the Europeans took heat from the US and some Latin American nations for what they said was the EU's failure to change its import regime on bananas to fall in line with WTO rulings by reducing tariffs.

The dispute was originally brought by Ecuador, one of the leading banana exporters in the world, which unlike some former European colonies does not enjoy a duty-free tariff quota. It said giving such advantages to certain nations was a violation of international trade rules.

Though the US does not directly export bananas to the EU, three US-based multinationals companies, Chiquita, Del Monte and Dole, have plantations in Central and South America.

The EU said it was looking to solve the overall issue with Latin America soon, though it has tied the matter in the past to the so-called Doha round of trade talks, which remains stalled.

Meanwhile, a WTO appellate body adopted earlier this month a report against the US continuing to use a 'zeroing methodology,' used for dealing with imports, which the EC, among others, said was in violation of trade laws, including anti-dumping requirements.