Number: RS20130
Title: The U.S.-European Union Banana Dispute
Authors: Charles E. Hanrahan, Resources, Science, and Industry Division 
Abstract: Both legal and commercial issues are involved in the U.S.-European Union (EU) dispute in the World Trade Organization (WTO) over the EU'S preferential regime for importing bananas. Legal issues concern WTO dispute settlement procedures, while commercial issues concern how access to the $5 billion EU market for bananas will be shared by exporting countries and companies and how the WTO's dispute settlement mechanism operates. Legislation enacted in the 106th Congress requires rotation of products subject to prohibitive duties as a way to pressure the EU to bring its banana import rules into WTO compliance. legislation reflecting concern about the possible adverse impacts of modifying EU preferences for Caribbean banana exporting countries also was introduced in the 106th Congress. Members and committees of the 107th Congress will be monitoring implementation of the agreement and its effects on U.S.-E trade relations.
Pages: 6
Date: Updated December 11, 2001