Ecuador, the world's largest banana exporter, said on Monday that the European Union (EU)'s new tariff policy violates a 2001 banana agreement between Ecuador and the bloc and the country has asked the EU to reconsider its policy.
The new tariff policy breaches the accord signed by the EU with Ecuador and the United States in 2001 to resolve a much larger dispute over bananas, Trade Minister Jorge Illingworth was quoted by local media as saying.
Illingworth insisted that Ecuador would reject the single tariff of 176 euros (about 207 US dollars) per ton, which the bloc intends to impose on Latin bananas.
The minister said Ecuador sent out a letter on Friday asking the EU to enter into negotiations in order to find a definitive solution to the banana tariff.
The EU announced on Tuesday it would launch the single tariff at the beginning of next year to replace a more complex regime of customs and quotas which currently regulates the entry of bananas to the bloc.
Under the current policy, Latin bananas pay a tariff of 75 euros (about 88 US dollars) for each ton up to the quota, and the tariff jumps to 680 euros (about 802 US dollars) for each ton over the quota.
Ecuador's Agriculture Minister Pablo Rizzo said late last week that Latin American banana producers have the right to demand a 20 to 25 percent reduction in the new tariff from the World Trade Organization, because banana is a sensitive product.
The WTO has rejected the EU on its two former tariff plans, which were even higher than the one proposed at present.
Source: Xinhua