MEPs this month expressed anger and frustration at US threats to impose a whole range of extra duties on imports from Europe in retaliation for what the US considers to be unfair arrangements for banana imports going to the EU. The US argues that EU preferential arrangements designed to bolster production in small Caribbean islands such as the Windward Islands discriminates against Latin American growers. But as Glenys Kinnock (UK, PES) pointed out, imports from the West Indies and other ACP states only accounted for 7 per cent of the EU market.
In fact, pointing out that there was no threat whatsoever to the US economy by the EU's action, Mrs Kinnock detected the sinister hand of US-based multi-nationals who control production in Latin America behind the American threats. "Is this dispute likely to be about rules or is it about the Democrats' pay-off to Chiquita bananas?" she asked. Commissioner Sir Leon Brittan sought to cool feelings and not let the banana dispute get out of hand and jeopardise EU/US relations in other areas.
He felt the new Transatlantic Partnership Agreement recently endorsed by Council and under which the Commission would start negotiations with the US authorities over a whole range of issues (including reducing technical barriers to trade, public contracts and patents) was a positive sign of the desire on both sides to improve relations.
Sir Leon took the view that the trade dispute over bananas should be settled under the auspices of the World Trade Organisation and he explained that reforms had been made which he considered were consistent with WTO rules.
MEPs then went on to adopt a resolution calling for trade talks with the USA to be suspended until the threat of sanctions has been withdrawn.