. /.  WORLD TRADE  
ORGANIZATION  WT/MIN(05)/33 
18 December 2005 
 (05-6195) 
MINISTERIAL CONFERENCE 
Sixth Session Hong Kong, 13 - 18 December 2005 Original:   Spanish 
 
EC COMPLIANCE WITH ALL MFN RIGHTS AND INTERESTS ON BANANAS 
UNDER THE DOHA MINISTERIAL DECISION OF 14 NOVEMBER 2001, 
THE AWARD OF ARBITRATOR OF 1 AUGUST 2005, THE 
AWARD OF ARBITRATOR OF 27 OCTOBER 2005, 
GATT ARTICLE XIII, GATT ARTICLE XXVIII, 
AND ALL OTHER WTO OBLIGATIONS 
 
Statement by Ecuador under Item 2(b) of the Agenda
 
 
  The following statement, made by the delega tion of Ecuador under Agenda Item 2(b) on 
14 December 2005, is being circulated at the request of that delegation.  
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  I have the honour to address this plenary session on an extremely sensitive topic of crucial economic and social importance to my country.  Ec uador is the world's leading banana exporter and 
more than one million Ecuadoria ns depend on this industry for their livelihood.   
 
 The banana import regime has indelibly st amped relations between the Latin American 
countries and the European Union, and the evolutio n of that regime has served as a benchmark and 
precedent in WTO dispute settlement.   Despite the length of time that has elapsed and the findings favourable to Latin American 
countries that have emanated from various authorities,  there has been no success  thus far in achieving 
a mutually agreed settlement reflecting the priority  interests of the partie s involved and consistent 
with the multilateral rules and objectives a dopted upon the establishment of the WTO. 
  Thus, on 29 November 2005, the Council of Ministers of the European Union reached an 
agreement on the Commission's proposal for the new banana import regime to be introduced on 
1 January 2006.   Ecuador considers that the proposal to apply a tariff of 176 euros per tonne on banana imports 
from Latin America, together with the establishmen t of a tariff quota of 775,000 tonnes in favour of 
the ACP countries at a zero tariff rate, does not reflect  the European Union's obligation to maintain "at 
least total access for MFN suppliers" and is doubly in breach of that obligation because it allows a 
higher quota for ACP imports;  what is even more in conceivable is that ACP imports in excess of that 
quota will be subject to the same tariff as  is applicable to the MFN suppliers. 
  Obviously, with the entry into force of the ne w banana import tariff regime, the waiver under 
Article I:1 of the GATT will cease to be applied, and consequently the Artic le XIII and Article I:1 
waivers will lapse on 31 December 2005, thus obliging the EU to apply a single tariff on all its banana 
imports. WT/MIN(05)/33 
Page 2  
 
  
 Allow me also to recall that Ecuador and th e United States entered into understandings with 
the European Union in 2001 to bring closure to the long-standing banana di spute.  The understandings 
provided that, no later than 1 January 2006, a single tariff regime was to be put into effect, which by 
definition cannot include preferential treatment or quotas for the ACP suppliers. 
 
 Thus, the regime approved by the Council of Ministers of the European Union specifically 
violates the understanding with Ecuador, and this re gime cannot be sanctioned by a new waiver under 
Article XIII of the GATT, since it requires the prio r agreement of the parties signatory to that 
understanding. 
 
 Throughout this lengthy process, Ecuador has consistently displayed its desire to find a 
solution that satisfies the interests of all parties through dialogue and direct negotiation;  it is our 
hope, therefore, that at this Ministerial Meeting in  Hong Kong the European Union will be prepared to 
negotiate a settlement with the Latin American  countries that satisfies all concerned.   
 
 Ecuador reserves the right to use all the lega l instruments at its disposal in the WTO to 
safeguard its legitimate rights, as it has demons trated in the past with successful results. 
 
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