Chile warns over Greek peaches

12 May 1999

Chile warns over Greek peaches

CHILE is back on the warpath over alleged subsidy fraud among Greek farmers and canned fruit exporters.

The Latin American country, which has been battling the issue for three years, says it is now considering taking legal action.

Chile says its canned peaches business is being threatened by illegal practices among European producers.

The Chile government claims Europe producers are encouraging exporters to flood its traditional markets such as Brazil, Mexico and Peru with cheap products.

Other fruit exporters, including Australia, South Africa, Argentina and the USA also want the issue to be discussed at next years round of world trade talks in Geneva.

There has long been suspicion about the operation of subsidies for the European Unions fruit market.

One study found that Greek farmers were receiving refunds for excess fruit that was then sold to processors at reduced prices.

Europe accounts for more than 70% of canned peach exports and Greece is Europes biggest producer.

• Financial Times 12/05/99 page 6