The EU Banana Trade Dispute

539 Words Jan 9th, 2018 2 Pages
After the relevant legislation was enacted, however, bananas from certain countries known as "ACP" countries developing countries in Africa, the Caribbean, and the Pacific that were by and large former colonies of European Union member-states and were in need of trade assistance according to the prevailing wisdom could be exported to the European Union/imported by member countries duty-free, while bananas produced in other countries were still being taxed to a significant degree (though the taxation amounts were now standardized across the entire European Union) (Patterson, 2001). Despite the justification of the duty-free imports from certain countries as a means of encouraging and assisting the development of countries that had been potentially held back or damaged by European colonization, and thus the lack of taxation serving as a sort of reparations, many other nations objected to this legislation as inherently unfair (Patterson, 2001). Not only was the tariff imbalance seen as unfair, it was also illegal under the General Agreement on Tariffs and Trade (GATT), according to many nations. The United States raised formal objections to the European Union's…
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