MEPs expressed their anger and disappointment at the refusal of a World Trade Organisation (WTO) dispute panel to change its mind and approve the EU's system of preferential aid for smallscale banana growers in the Caribbean and Africa. The WTO panel was accused of bowing to US pressure and favouring Latin American producers. But Giacomo Santini (I, UFE) contended that the ruling would not lead to any new financial benefits for the workers in low-cost Central American countries where producers received just US $3 or US $4 for bananas retailing at US $20.
According to Mr Santini, EU rules enabled growers at present benefiting from the EU's preferential scheme to receive as much as US $13 for bunches of bananas selling for US $18.
Terry Wynn (UK, PES) however, underlined that the decision spelled "despair" for many African, Caribbean and Pacific countries. Caribbean producers were prepared to compete on the world market, but needed time to adjust. This could take five years or even longer. Glenys Kinnock (Wales, PES) took issue with Chiquita producers whose role she felt exerted undue influence over the US. There were question marks over the company image in the US presidential election campaign. This was being investigated by a US Senate committee, she said. Many Americans seemed to be ignorant of the impact on Caribbean producers. She also sought clarification of reports that the US was trying to influence proposed changes to EU rules.
Stan Newens (UK, PES) took the view that the decision demonstrated how the free trade system allowed the rich and powerful to destroy the livlihoods of poor farmers. These producers did not present any serious threat to large-scale growers, he said. John Corrie (UK, EPP) commented: "This is a classic example of industrialised agriculture within a free market causing enormous damage to tiny, very poor farmers in developing countries. The WTO must understand the effects of its legislation on these poor nations. If the WTO refuses to change its position, then Europe will have to find ways of helping the small banana growers in the Caribbean diversify, or enable them to continue selling their bananas with some acceptable compromise." MEPs voted 286 to 124 in favour of a resolution which urges Council and Commission "to devise an appropriate response which will ensure the preservation of Community banana production and maintain a special arrangement for imports from ACP countries". The resolution urges the EU to continue to argue its case with the WTO; it also calls for the Commission and the Council to propose a revision of WTO mechanisms for settling disputes, to take into account social, health and environmental factors. The Commission is urged to uphold free competition, and at the same time defend the market share enjoyed by EU producers and ACP countries.