Banana war will go USAs way


18 November 1998


‘Banana war will go USA’s way’


A CEASEFIRE in the transatlantic battle over bananas could be delayed by few months – but todays Financial Times expects the crisis to eventually resolve itself in Americas favour.

The USA has threatened Europe with a trade war unless it complies with a ruling by the World Trade Organisation (WTO) on the import of bananas.

But the European Union (EU) has claimed that the issue should be heard by a WTO panel before any sanctions are introduced.

Legal experts agree with the EU, but they also agree that the EU will ultimately have to comply with US demands.

The Financial Times reports that uncertainty over the future of preferential access to Europe for Jamaican bananas, and the prospect of falling prices, has forced the countrys industry to restructure its operations.

The newspaper reports that restructuring will involve the loss of 2500 jobs.

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