The European Union, forced by the World Trade Organisation (WTO) to change its banana import rules, is considering a plan to scrap its licensing system and to aid Caribbean producers, EU sources said yesterday. The WTO ruled last year that the EU banana regime, which critics say favours imports of bananas from former British and French colonies in the Caribbean and Africa, broke its free trading rules.

The world trade body has given the 15-nation EU until January 1st, 1999, to bring its banana regime into line with its principles.

The European Commission is expected at a meeting on Wednesday to discuss proposals to get rid of the licensing system, the main target of the WTO ruling, EU sources said.

EU banana import rules are highly sensitive and the proposals are sure to cause controversy both within the EU and with banana producers.