The EU and the US have bought themselves more time to resolve their long-running banana trade dispute.
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The row, which has been subject to World Trade Organisation disputes procedures since 1996, has taken a fresh twist after officials on both sides agreed to postpone the adoption of a ruling branding the EU a scofflaw over its favouring the import of African, Caribbean and Pacific (ACP) bananas over those exported from Central and South America, usually by US firms.
The decision gives US and European diplomats until 29 August to thrash out a deal over bananas before a ruling is formally approved, possibly triggering US retaliatory trade sanctions.
The ruling was originally due on 19 July, during sensitive negotiations to seal a general global food trade deal under the WTO Doha Development Round. This, however, is being hampered by the banana row.
A Geneva diplomat told just-food that “ACP and Latin America countries are holding the Doha round hostage over bananas”.
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By GlobalDataIndeed, WTO director general Pascal Lamy is pushing an informal deal on bananas, to facilitate a general Doha food agreement by 31 July.
