. /.WORLD TRADE
ORGANIZATIONWT/DSB/20
24 October 2000
(00-4408)
Original:  Spanish
STATEMENT BY THE MINISTERS RESPONSIBLE FOR FOREIGN TRADE
OF COLOMBIA, COSTA RICA, GUATEMALA, HONDURAS,
NICARAGUA, PANAMA AND VENEZUELA
Communication from Panama
The following communication, dated 19 October 2000, has been received from the Permanent
Mission of Panama on behalf of Colombia, Co sta Rica, Guatemala, Honduras, Nicaragua, Panama
and Venezuela with the request that it be circulated to Members of the Dispute Settlement Body.
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We, the Ministers for Foreign Trade of Colombia and Costa Rica, the Minister for the
Economy of Guatemala, the Minister for Industry and Trade of Honduras, the Deputy Minister for
Development, Industry and Trade of Nicaragua, a nd the Minister for Trade and Industry of Panama,
the representative responsible for negotiations ad interim of the Embassy of Venezuela, representing
the Minister for Production, Industry and Trade of Venezuela, meeting in Panama City, Republic of
Panama,
HEREBY RESOLVE:
1. To reject vigorously and categorically the communication adopted by the college of
Commissioners on 4 October last, wh ich was put before the European Council on 9 October, deeming
it to be inconsistent with many of the principles in the WTO Agreements, in addition to being
prejudicial to the trade, economic and social interests of our peoples, and also support the declarations
of the United States of America and the Caribbean ACP countries in this respect.
2. To reject the alternative of immediate and discriminatory application of a single tariff
mechanism, at a predictably high level, in order to protect EC/ACP bananas, thus establishing a rigid
trade barrier for our production and exports of bananas to the European Community.
3. To reemphasize the importance of the successful production and marketing of our bananas for
the strengthening and stability of economic, political, social and trade development in our rural
sectors.  The regime proposed would undermine the situation of workers in this sector, to the
detriment of peaceful co-existence in regions that have greatly suffered from natural disasters, poverty
and, in some cases, from past and present armed conflict.
4. Also to draw attention to the negative consequences a regime such as that advocated by the
Commission in its latest communication would have for our economies, inasmuch as it would further
distort markets, lead to the transfer of investment  capital in this sector from Latin America and the
Caribbean to other regions and countries, together with a corresponding deterioration in the labour,
wage-earning and social situation of our producers a nd workers, in flagrant contradiction of the public
statements by the European Community on the objectives of its cooperation policies in Latin America.
5. To remind the Council of the European Union of the proposal put before the
European Commission on 1 December 1999 by the Pr ime Minister of Dominica, on behalf of the
Caribbean ACP countries, which sets out the proposal s made both by the United States of America
and by the undersigned Governments, and constitutes an acceptable basis supported by ourWT/DSB/20
Page 2
Governments for the negotiation of the future regi me for the import of bananas into the European
Community and at the same time reflects the capacity and readiness of our countries to seek together
appropriate mechanisms to protect the ACP producers, especially those in the Caribbean.
6. To call on the European Commission to ensure that, as soon as possible, the countries
represented here, whose producers would be those mo st affected by the FCFS system, are included in
the dialogue on the European Community's future banana regime, which has recently been resumed
with other interested parties, bearing in mind that we represent over 70 per cent of non-preferential
bananas in the European Community market.
7. To underline further the determination of our Governments to participate constructively and
flexibly in transparent dialogue and negotiation based on respect for our interests with the aim ofpreparing as soon as possible a proposal that is in compliance with the WTO and meets the interests
of all parties, insofar as no decision has been taken by the European Community concerning the future
banana regime.  The conclusions of the Council of Ministers of 9 October in fact refer specifically to
the proposal of the European Commission of 10 November 1999, which sets forth three different
options:  a system of tariff quotas (TRQ), with a traditional method of granting import licences;  aTRQ system with licences issued on a FCFS basis;  and, in the longer term (for the year 2006), an
exclusively tariff regime.
8. To point out that the communication of the European Commission submitted to the Council
of Ministers on 9 October last will neither help to resolve the trade dispute within the WTO, which isthe wish of the member States of the European Community, nor the adoption of the extension of the
tariff preferences for bananas requested by the European Community and the ACP countries under the
Cotonou Agreement, inasmuch as it will lead to greater confusion and will not comply with the
transparency and predictability requirements of the European Community's future banana regime.
9. To transmit a copy of this Statement to the Council and the member States of the European
Community, and to the European Commission.
Done at Panama City, on seventeen October in the year two thousand.[Signed]
MARTA LUCIA RAMÍREZ DE RINCÓN
Minister for Foreign Trade of the Republic of
ColombiaF. TÓMAS DUEÑAS
Minister for Foreign Trade of the Republic of
Costa Rica
EDUARDO WEYMANN
Minister for the Economy of the Republic of
GuatemalaOSCAR KAFATI
Minister for Industry and Trade of the Republic
of Honduras
AZUCENA CASTILLO
Deputy Minister for Development, Industry and
Trade of the Republic of NicaraguaJOAQUIN E. JÁCOME DIEZ
Minister for Trade and Industry of the Republic
of Panama
LUISA ROMERO DE BERMÚDEZ
Minister for Production, Industry and Trade of the Bolivarian Republic of Venezuela
(By delegation:  Emma Toledo, Representative responsible for negotiations ad interim of the Embassy
of the Bolivarian Republic of Venezuela)
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