10 March 1999
Ceasefire ahead in banana war?

THE threat of further clashes between the European Union (EU) and the USA over bananas receded yesterday (Tuesday) as sides apparently edged towards a compromise, according to a report in the Financial Times.

US and EU officials interviewed in the paper suggested there were talks taking place which could lead to a deal.

The conflict was brought to a head last week when the USA began implementing a threat to impose sanctions on more than $500 million (£309m) of European exports.

It said the EU had not complied with a 1997 World Trade Organisation ruling against its banana regime, which favours African, Caribbean and Pacific imports.