EU cuts deal to end 'banana wars'

GENEVA, Switzerland, Dec. 15 (UPI) -- The banana wars between Europe and Latin America came to an end Tuesday when the European Union said it would cut tariffs on the tropical fruit, officials said.

The BBC reported banana prices could drop by 12 percent as a result.

Under the agreement initialed by trade representatives Tuesday in Geneva, Switzerland, and to be signed officially in six to nine months, the duty on imported bananas will go from $256 a ton to $215 initially, and to $116 over the next seven years.

"I am delighted that we have finally found a way to solve the bananas dispute with a compromise that works for all sides," said European Commission President Jose Manuel Barroso. "This is an important boost for the multilateral system."

The EU first imposed the tariffs in 1993, provoking outcries not only from Latin America but from the World Trade Organization and the United States, home to corporations such as Del Monte and Dole, with heavy investments in Latin America.

Dropping the tariffs will likely have a negative effect on other banana-producing nations that have not had to pay them, the report said.

Errol Emmanuel, acting manager of Dominica Banana Growers Ltd. told the BBC small farmers in the Windward Islands would be hit hardest.

"They don't have the resources to compete with the Doles and the Del Montes, who own vast tracts of land," he said.

The deal includes financial aid to compensate growers in those countries.

Europe is the largest banana market in the world, consuming 5.5 million tons last year.