JOINT ASSEMBLY OF THE CONVENTION CONCLUED BETWEEN THE AFRICAN, CARIBBEAN AND PACIFIC STATES AND THE EUROPEAN COMMUNITY (ACP-EC)

RESOLUTION () on bananas

The ACP-EU Joint Assembly,

- meeting in Luxembourg for its 23rd Session from 23 to 26 September 1996,

A. reaffirming its resolution on bananas adopted during the 22nd Session held in Windhoek (Namibia) from 18 to 22 March 1996,

B. recalling the resolutions adopted in this regard by the 63rd Session of the ACP Council of Ministers held in Apia (Western Samoa) from 24 to 26 June 1996,

C. re-emphasizing the importance of ACP banana exports to the economies of the States concerned and the contribution of revenue earned to their socio-economic development,

D. considering that a disruption in the trade would result in a collapse in some economies, with devastating consequences for socio-economic development and political stability,

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 Annexe LXXIV of the Lomé IV Convention, to safeguard access for the ACP producers to their traditional markets and to improve the conditions under which ACP fruit is produced and marketed in the Union,

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 fully honoured under the Common Organization of the Market (COM) for bananas,

G. aware of the EU's stated commitment to the regime and the proposed amendments to which the ACP Group has submitted its position for consideration,

H. gravely concerned by the proposals put forward by the Commission for reform of the COM for bananas and the dangers of destabilizing the market that they entail,

I. whereas the over-supply of the Community banana market, which was already worrying last year, has deteriorated further in the first six months of 1996, leading to a spectacular collapse in prices,

J. deploring, in this connection, the Commission decision to extend to 1996 the increase in the tariff quota of an additional 353 000 tonnes originating in the dollar zone, and regretting that this decision was taken without consulting any of the Union's ACP partners,

K. whereas a number of incidences of fraud are still occurring with regard to the actual quantities of bananas imported into Europe,

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

M. concerned that the USA, Guatemala, Honduras, Mexico and Ecuador have lodged a complaint in the WTO against the EU banana regime and have requested a Dispute Settlement Panel to examine the compatibility of the regime with international trade rules,

N. concerned also that the Panel selected does not include a representative from a developing country and may be considered to be somewhat biased against the ACP,

O. noting that the ACP were not granted full participation in the proceedings of the Panel and as a result may not be permitted to fully defend their interest,

P. noting the EU's commitment to the defence of the Regime in the WTO and its support for the ACP's participation in the proceedings of the Panel,

Q. concerned that no decision has been taken on the ACP's request for the special case of Somalia to be considered as one of force majeure despite the severe hardship resulting from the continuous civil unrest which has adversely affected that country's industry,

1. Calls on the Council of the European Union

- to ensure that the Community fulfils its obligation to the ACP and honours the commitment given in Protocol 5 and Annexe LXXIV of the Lomé IV Convention;

- to give full consideration to the ACP's position with respect to the modification of Regulation 404/93, in particular:

- transferability of short-delivered quantities;

- force majeure provision;

- exemption from 'dollar` licence requirements for the non-traditional quantities;

- the special situation of the Windward Islands;

- allocation of specific quota to Ghana; and

- ensuring that any modification of the banana regime does not reduce the advantages the ACP were guaranteed on the EU market;

2. Calls for the guarantees granted to ACP and Union banana producers by the Community regime in its present configuration to be continued in future years;

3. Expresses the most serious reservations concerning the latest batch of proposals put forward by the Commission with a view to adapting the COM;

4. Urges, in particular, that the import licences reserved for Union producers and traditional ACP suppliers be maintained at 30 %;

5. Considers that the additional tariff quota of 353 000 tonnes granted at the time of enlargement of the Union is an obvious over-estimate and urges the Commission to cut it back;

6. Calls on the Commission to defer at once the application of its decision extending to 1996 the increase of an additional 353 000 tonnes in the tariff quota, so as to clarify the situation on the Community banana market;

7. Urges the Commission:

(i) to remain resolute in defence of the banana regime in the WTO against the USA and the other Latin American complaints;

(ii) to give consideration to the ACP's request for the special case of Somalia to be treated as one of force majeure in order to alleviate the hardship being faced by the poor farmers of that country;

8. Urges the ACP Group to participate fully in the WTO in order to improve recognition and understanding of the special problems and the concerns of ACP countries;

9. Calls on the Member States and the Commission to strengthen customs controls on the volume of bananas imported into the Community, to put an end to illicit imports and tighten up investigation of the fraud against the Community budget to which such imports have given rise;

10. Instructs its Co-Presidents to forward this resolution to the ACP-EU Council, the Commission, and the signatory states of the Lomé Convention.