EU member-states yesterday backed Commission proposals for ending the long-running banana trade dispute with the US and Latin American countries but made clear they would keep the EU executive on a tight leash during negotiations.

After a long discussion, EU foreign ministers declared that the Commission's plan for importers to gain access to the EU market, through quotas on a "first come, first served" basis until 2006 and then move to a tariff-only regime, provided a "basis for settling the banana dispute."

But this mandate for the Commission to negotiate a settlement was hedged with qualifications.

The ministers, meeting in the general affairs council, first ordered an expert examination of the technical aspects of the scheme.

This move was to reassure Germany, Belgium and Italy, which dislike the quota element of the plan.

To meet the concerns of other member-states the ministers also told the Commission to "submit in good time" the outcome of talks on moving to a tariff-only system.

"The council will take a decision when it has seen that report, taking into account the situation of community producers and consumers and the Union's commitments towards ACP countries [in Africa, the Caribbean and Pacific regions]," they added.