Joint Assembly of the Convention concluded between the African, Caribbean and Pacific States and the European Union (ACP-EU) - Resolutions adopted on bananas (ACP- EU/2151/97/fin.)

The ACP-EU Joint Assembly,

- meeting in Brussels from 17 to 20 March 1997,

- reaffirming the resolutions adopted by this Assembly on 6 October 1994 in Libreville, on 3 February 1995 in Dakar, on 29 February 1996 in Windhoek and on 25 September 1996 in Luxembourg,

- recalling the resolutions adopted in this regard by the 64th session of the ACP Council held in Brussels from 13 to 15 November 1996,

A. re-emphasizing the importance of ACP and European banana industries to foreign exchange earnings, employment infrastructural development, environmental protection and the general socio-economic development of the States concerned,

B. considering that a disruption in the banana trade would result in severe unemployment, loss of export earnings and a collapse in some economies with devastating consequences for social and political stability,

C. noting with concern that excessive supplies in the market as a result of the increase in the tariff quota for dollar zone countries above the level of demand has led to the collapse of prices in the European Union market,

D. whereas the fall in prices is causing extreme penury for ACP and Community producers,

E. recalling the objectives of the ACP-EC Convention for improving ACP trade with the EU, and in particular the commitment in Protocol 5 on Bananas, including Annex LXXIV in the Lomé IV Convention, to safeguard access for the ACP producers on their traditional markets and to improve the conditions under which ACP bananas are produced and marketed,

F. noting that the EU banana regime established by Regulation (EC) No 404/93 makes provision for ensuring that the EU's commitment to the ACP banana-producing States is honoured under the common organization of the market (COM) for bananas,

G. whereas the COM is designed to ensure that ACP suppliers and Union producers will continue to obtain an economic return in the Community market, and whereas the absence of income support for ACP producers makes the need to obtain a proper return in the market place still more important for all concerned,

H. whereas the Court of Justice of the European Communities has accepted the legal validity of the common organization of the market in bananas, and whereas the COM is included in the Marrakesh Agreements signed by all the GATT contracting parties,

I. considering that the ACP Group has submitted its position for consideration in the current Commission proposal to Council for amending the regulation,

J. having regard to the opinion of the European Parliament of February 1997 on the Commission proposals for reform of the COM in bananas,

K. noting with concern that the ACP banana exports to the Union have been capped at a maximum quantity, whereas the Latin American exports of 'dollar` bananas have been allowed to expand through increases in the tariff quota, even to the detriment of market prices,

L. concerned that the ACP's request for the case of Somalia to be treated as one of force majeure has not been favourably considered, despite the severe hardship arising from the adverse effect of the civil unrest on that country's industry,

M. extremely concerned about the challenges to the regime, in particular the current WTO Dispute Settlement Panel, established at the request of the USA and four Latin American countries to determine the compatibility of the Regime with international trade rules,

N. gravely concerned by the interim report of the WTO Panel, which casts doubt on the Community banana regime,

1. Urges the Council of the European Union immediately to set up an adequate response based on a political determination to preserve the interests of ACP and European banana producers;

2. Strongly supports the position adopted by the European Parliament, which was consulted on the proposals for reform of the COM in bananas and rejected any increase in the tariff quota beyond 2,3 million tonnes and restored 30 % of the import licences reserved for Union producers and traditional ACP suppliers and urges the Commission and Council to follow the opinion expressed by Parliament;

3. Calls on the Council of the European Union to:

i) ensure that the commitment to the ACP and European producers is maintained by guaranteeing that the advantages in and access to the EU market for ACP and European bananas are not eroded;

ii) give urgent favourable consideration to the ACP's position submitted with regard to the proposed amendments to Regulation (EC) 404/93, particularly:

- arrangements for transferability similar to those in the GATT Framework Agreement permitting Latin American banana-supplying States to reallocate, on a temporary basis, quantities delivered short in any one year by one or more supplying states, to be extended to ACP suppliers within a global arrangement without geographical limitations and to include non-traditional suppliers;

- force majeure provision;

- exemption from 'dollar` licence requirements for the 90 000 tonnes non-traditional quantities allocated in the Framework Agreement;

- the special situation of the Windward Islands;

- allocation of a specific quota to Ghana;

iii) permit ACP countries and European producing regions to participate in any growth or expansion of the EU banana market;

4. Urges the Commission to:

i) show the utmost firmness in the defence of the banana regime against the USA and the Latin Americans in the WTO and take full advantage of the appeal process under the dispute settlement mechanism;

ii) take appropriate measures to ensure that there is no collapse in market prices which would significantly reduce the earnings of ACP producers;

iii) favourably consider the ACP's request for the special case of Somalia to be treated as one of force majeure;

5. Instructs its Co-Presidents to forward this resolution to the ACP-EU Council and the Commission.