The European Commission has agreed not to apply the stabilization mechanism on banana imports from Nicaragua, extending the preferential customs tariff permit, despite the fact that imports have exceeded the limit established by the EU for the whole year since March.
The tariff reduction granted to third countries for the importation of bananas to the EU has allowed the increase in imports, while the defense mechanism established in the trade agreements to protect Community productions hasn't been applied since it's establishment.
On March 25, Nicaragua exceeded the threshold on banana imports to Europe, which was established at 14,500 tons for the whole of 2019; However, the Commission's assessment, based on the evolution of the EU market in January and February, established that -due to their small volume- imports from Nicaragua do not have negative consequences as they have not affected the productions of the outermost regions.
This decision was taken despite the fact that the price of the banana imported from Nicaragua has been 26% below the category's average price, which means that, despite their low volume, they have helped decrease the prices of banana in general.
The European Union took January and February 2019 as a reference period of the impact of imports instead of the period of time after Nicaragua exceeded import limit established for them; i.e. since April, when the European banana situation started to suffer a significant deterioration.
"Once again, the European Commission rejects the application of the measures provided for in international agreements as mechanisms of protection and stabilization for the defense of the community banana sector, which has an unquestionable effect on the sector," said Domingo Martin, president of ASPROCAN. "It is worrying to see how a decision is applied in the month of June, months after the breach, based on data of the months of January and February, and without taking into account the pace in which the threshold is being exceeded or how EU banana productions have been affected and are experiencing a strong market crisis."
For more information:
Plátano de Canarias
Marta Rodríguez, communication manager
m.rodriguez@platanodecanarias.net
Phone: +34 922 535 142