African and Caribbean banana exporters came under pressure today to settle a row that could undermine global trade talks, but Cameroon said it was holding out for better terms.
The prospects for make-or-break talks at the World Trade Organisation (WTO) were delicately poised as rich and poor nations studied proposals for new export opportunities under the negotiations, now in their seventh year.
A deal on bananas would settle one of the world's oldest trade disputes and is key to any breakthrough in the WTO's Doha round of talks which could give a boost to the global economy.
The European Union and Latin American banana producers agreed early today to cut the EU's import duty to €114 a tonne by 2016 after an initial cut to €148 in 2009 from €176 euros.
But Cameroon, speaking on behalf of banana exporters in the former European colonies in Africa, the Caribbean and Pacific (ACP), said the deal was unacceptable in its current form.
Lowering EU import tariff further for the ACP's competitive Latin American rivals could devastate ACP banana output, some countries warn. Their bananas face no EU import duty.
Cameroon's trade minister Luc Magloire Atangana Mbarga said there was a "real risk" of the dispute blocking the wider talks.
"There is a real risk but trade negotiations should not be about blackmail," he told reporters before going into a meeting with EU officials. "We want healthy discussions."
He said Cameroon wanted financial support to compensate for the export revenues lost to Latin American competitors and a two- or three-year grace period before EU tariffs are lowered.
EU member states France and Spain also have farmers in the Caribbean territories and the Canary Islands who grow bananas.
The fruit is a key export for many Latin American and ACP countries.
Cameroon's banana industry is the biggest employer in the country after the public sector, and government officials say the industry helps prevent unrest in West Africa, which has been wracked by civil conflict in some countries in recent years.
The latest round of WTO talks began on Monday and are likely to stretch into the middle of the coming week.
Ministers are striving for agreement on how to open farm and industrial markets, the two toughest areas of a global deal which would also span services.
Delegates were hoping to reach final agreement on bananas and other tropical products issues before ministers from 35 key WTO players resume talks this evening on the Doha deal.
The Doha negotiations were launched in November 2001 to boost the world economy and help developing countries grow out of poverty. They were almost written off last week as rich and poor countries remained deadlocked.
Reuters