Belize puts up a fight in banana talks at WTO in Hong Kong
Few Belizeans might realise that half a world away, the outcome of talks in a Hong Kong boardroom has the power to significantly affect Belize’s agricultural sector. A Belizean delegation led by Minister of Foreign Affairs Godfrey Smith is putting the country’s case for better prices for local bananas on the international market to the World Trade Organization. Meetings leading up the Hong Kong powwow have not bode well for small countries with open economies like Belize as the bigger countries are trying to muscle away monies crucial to the survival of the industry in the Caribbean. Central to discussions this week is the fact that the European Union has proposed a tariff of one hundred and seventy-six Euros, a figure that would only work for countries like Belize if all the quota restrictions were removed. Things deteriorated during a special plenary session yesterday when Honduras, Costa Rica, El Salvador, Panama and Colombia teamed up to beat up on the proposal, going so far as to threaten legal action if the proposed tariff stands. Of note is that the big boys like India and the United States have thrown their considerable weight behind the objectors. In his presentation on the floor, Minister Godfrey Smith maintained that “forced liberalisation” has only brought hardship and economic ruin, capitalizing on the fact that accepting any less than the one hundred and seventy-six figure would be severely prejudicial against countries like Belize.
Godfrey Smith, Minister of Foreign Affairs
?We have in good faith tolerated this in search of a consensus solution. But enough is enough. The latest proposal from the EC for a tariff of Euro one hundred and seventy-six will undermine the viability of many ACP supplying states, of which Belize of course is one, and this forced exit from the market will create even better market access to dollar suppliers. This latest proposal will not only allow MFN countries to maintain total market access, it will in fact increase their market access.
We therefore urge the EC to hold firm to this less than acceptable tariff level is any further reduction will severely prejudice ACP rights under the Cotonou Agreement.
Mr. Chairman, we look back at the statements of the USA and other complainants at the start of the last WTO Dispute Panel on bananas and recall vividly their assurances that the dispute was not intended to harm ACP supplying states. That now seems to ring rather hollow in light of the continuing erosion of ACP market share and prices.
We call on the EC to implement a true tariff only regime for both the dollar and ACP suppliers by removing all quota restrictions and certainly not to go below the tariff preference at Euro one hundred and seventy-six per tonne and to provide substantial new resources to those ACP states that may have to exit the industry due to this unsustainable result.?
Smith’s address will air in its entirety immediately following this newscast.
