B4-0737, 0743, 0748 and 0749/97

Resolution on the WTO ruling on bananas

The European Parliament,

- having regard to its previous resolutions on the COM in bananas,

A. having regard to the conclusions of the Panel set up by the World Trade Organization in response to the complaint made by the United States and four Latin American countries concerning the COM in bananas,

B. whereas the European Union appealed against the WTO ruling on 12 June 1997,

C. whereas on 5 September 1997 the appeals body confirmed virtually all the conclusions reached by the Panel, particularly those to the effect that the Community system of import licences and compensation for losses caused by natural disasters is incompatible with WTO rules,

D. whereas the calling into question of these key elements of the Community system would have disastrous consequences for the Union's banana-producing regions which, like many ACP countries, are occasionally ravaged by cyclones, as well as for European producers, given their social obligations and duty to protect the environment,

E. whereas the world banana market is largely dominated by cartels as a result of the activities of the multinationals, which already control two thirds of the Community market,

F. whereas this ruling affects both the common agricultural policy and cooperation policy and whereas the rejection of the European Union's appeal could serve as an unfortunate precedent with regard to the future of the Lomé Convention,

G. whereas banana production has a significant role in some ACP countries in securing economic well-being and social stability,

H. having regard to the considerable economic and social importance of the Community banana regime for the outermost regions of the Union and for the ACP supplier countries,

I. whereas the European Union is bound by the undertakings it has given to the ACP countries under the Lomé Convention and in particular the protocol on bananas,

J. having regard to the special relationship between the countries of the European Union and their partners in Africa, the Caribbean and the Pacific,

K. whereas the Community regime secured political endorsement from GATT in the Marrakesh Accords of 1994,

1. Calls on the European Union and all its Member States to assume their responsibilities and duty to show solidarity towards the outermost regions and the ACP countries by protecting the legitimate interests of their banana producers;

2. Urges the Council and Commission to devise an appropriate response which will ensure the preservation of Community banana production and maintain the special arrangements for imports from ACP countries;

3. Appeals to the Union to argue its case with the WTO authorities and win acceptance for the view that the Community banana regime and the corresponding trade preferences are genuine development instruments for the outermost regions and for many ACP countries and must therefore be maintained;

4. Urges the Commission to uphold free competition in the Community market by defending the market share still enjoyed by Community producers and ACP countries which traditionally export their bananas to the Community market;

5. Calls on the Council and the Commission to propose a revision of the WTO mechanisms and its procedures for settling disputes so that they take better account of social, health, cultural and environmental issues;

6. Instructs its President to forward this resolution to the Commission, the Council, the ACP-EU Council of Ministers and the Director-General of the WTO.