Ceasefire ahead in banana war?

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.

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