Dole Food Co. Inc. (NYSE:DOL) Friday (13 April) announced its disappointment with, and opposition to, the actions of Robert Zoellick, the United States Trade Representative, to block the European Union’s proposed “first-come, first-served” reform of its banana import regime.
Dole believes in free trade, open markets and the freedom for everyone to compete for markets.

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The European Union had passed legislation to open its banana market within five years. In the transition to an open, tariff-only market, it had proposed the most pro free trade, open competitive system possible — a first-come, first-served system that was to be implemented July 1, 2001.
Dole believes, and European Union officials have stated, that this proposed first-come, first-served reform system would comply with World Trade Organization rules.
The United States has 32 import regimes where access to the United States market is allocated on a first-come, first-served basis; none are allocated on a historical reference period with licenses as negotiated by the United States Trade Representative.
Dole believes that the United State Trade Representative has never opposed this proposed first-come, first-served system on the basis of World Trade Organization incompatibility.

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By GlobalDataThe interim trade regime that the United States Trade Representative has negotiated is a continuation of a closed, managed market with guaranteed licenses that protects at historical levels certain European Union operators over Dole and other free trade advocates.
By threatening to implement the United States carousel law that imposes tariffs on European goods, Dole believes that the United States Trade Representative blocked the European Union from real reform. Under this interim trade regime, only European companies that operated and bought bananas and sold them into the European Union market in the years 1994-1996 will be eligible for licenses.
This time period, when the existing illegal regime first went into effect, ignores the dynamic changes and investments that have taken place during the past eight years by Dole and other banana suppliers.
In addition, Dole has filed in European Union court proceedings allegations that the European Union’s records show fraudulent over-application for licenses by as much as 30 percent during this time period.
Dole believes that certain European operators who first received the discriminatory licenses that led to the original World Trade Organization actions by the United States and Ecuador will receive substantial licenses during the next five years due to the United States Trade Representative’s action, thereby preventing open competition in the European Union market.
The action taken by the United States Trade Representative neither guarantees that the tariff-only system will actually be implemented in 2006 nor provides any remedy if it is not implemented.
David H. Murdock, chairman and chief executive officer, said: “The action by the United States Trade Representative that derailed the real reform of the European Union’s banana regime prevents competition for the European Union market. This action disadvantages Dole and numerous Latin American operators from competing for future increased market share. This action perpetuates the current licensing system, licenses, managed trade and a closed market and is inconsistent with the American free enterprise system. It gives one company, Chiquita Brands International Inc., a dominant, fixed market share of the European Union’s closed, quota market and continues to allocate licenses to protectionist European Union traders. We believe that these vested interests along with their political influence will make it difficult for the European Union to actually implement an open market, tariff-only system in 2006. We believe that all American agriculture exporters that need open markets and all free trade supporters will be deeply disappointed by the action taken by the United States Trade Representative.”
Dole is assessing the impact on future operations of the agreement between the United States Trade Representative and the European Union Trade Commissioner.
Dole Food Co., with 2000 revenues of $4.8 billion, is the world’s largest producer and marketer of high-quality fresh fruit, fresh vegetables and fresh-cut flowers, and markets a growing line of packaged foods.
This release contains forward-looking statements that involve a number of risks and uncertainties. Forward-looking statements, which are based on management’s current expectations, are generally identifiable by the use of terms such as “shall,” “expects,” “anticipates,” “projects” and similar expressions. The potential risks and uncertainties that could cause actual results to differ materially from those expressed or implied herein include weather-related phenomena; market responses to industry volume pressures; product and raw materials supplies and pricing; changes in interest and currency exchange rates; economic crises in developing countries; and quotas, tariffs and other governmental actions. Further information on the factors that could affect Dole’s financial results is included in its SEC filings, including its Annual Report on Form 10-K.