24 November 1998
EU ready to do a deal over ACP bananas

THE European Union (EU) looks set to patch up its quarrel with the USA over the preferential treatment of imported bananas from the Caribbean.

EU officials said they would accept a US offer for arbitration on the dispute through the World Trade Organisation.

The USA had threatened to unleash a penal wave of sanctions on EU goods exported into the USA unless Europe revised its banana import policy.

Europes peace offering is conditional on the USA suspending the threat of sanctions.