The Latin American banana-producing countries on Monday welcomed the decision of the World Trade Organization (WTO) against increased tariffs planned by the European Union (EU), which would have caused serious damage to the economy of these countries.

Currently, Latin American exports to the EU are limited, with the duty per ton set at 75 euros (about 90 US dollars) for the first 2.7 million tons of exports, rising after that to 680 euros (about 816 US dollars) per ton.

Earlier this year, the EU proposed an import duty of 230 euros (about 280 US dollars) per ton to replace the existing system.

The nine affected countries complained before the WTO, claiming that the increase would bankrupt their banana industries and requested arbitration.

Ecuador, the world's main producer and exporter of bananas, appeared satisfied Monday about the WTO decision against the EU tariff increase and reiterated its position to reject any increase above the current 75 euros.

At the same time, the Nicaraguan government claimed that the WTO decision was "a victory" for the nine Latin American banana-producing countries in their common campaign against the EU-proposed measure.

The governments of Panama and Honduras were also pleased by the WTO's favorable decision for the Latin American group.

On the other hand, Costa Rican Foreign Trade Minister Manuel Gonzalez is still unhappy with the current situation, saying "we Latin Americans will continue paying the 75 euros even if the ACP (Africa, Caribbean and Pacific) countries pay nothing and in spite of the enormous EU subsidies on banana production."

The Colombian Trade, Industry and Tourism Ministry said "Colombia has played a leading role in the region in handling the Latin American position in the arbitration, to establish arguments in defense of the banana issue."

Now, the EU has 10 days to present a new proposal for a tariff to Brazil, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Nicaragua, Panama and Venezuela.

Latin American producers currently supply about 60 percent of bananas on the EU market, with African and Caribbean producers taking a further 20 percent.

EU-grown bananas -- mainly from Spanish and French islands -- make up the other 20 percent.

Source: Xinhua