26 November 1998
USA in banana talks with EU

THE USA and the European Union are trying to negotiate a solution to their dispute over bananas, which has had the makings of a major trade war.

The Americans have threatened a draconian regime of sanctions on its exports unless the EU complied with a World Trade Organisation (WTO) ruling. The WTO had outlawed the EUs preferential treatment of Caribbean bananas.

The US and EU are now trying to agree on a further hearing before a WTO panel.