Improvement in banana trade regulation

Until 25 years ago there was a clear distinction between A (Chiquita, Dole) and B (Turbana, Favorita) brands. A lot has changed. Categories have become increasingly diffused. Importers see all kinds. This diffusion almost inevitably led to a lack of quality and oversight. Eastern-European countries in particular were considered dumping grounds for fruit: importing bananas of ambiguous origin. Fortunately, things seem to be improving. Nowadays, importers say, banana import resides on the basis of a contract: "You can’t just order a container of something and have it brought in," say importers, "things are much tighter. Regulation has improved a lot."

In general, three kinds of bananas are distinguished: the Euro bananas, ACP bananas and Dollar bananas. Euro bananas are produced natively and have limited access to European markets. ACP bananas are cultivated in former colonies like Africa and the Caribbean. Dollar bananas (named after regions dominated by American multinationals) are from Latin America.

In an effort to combat heavy competition from the Americas (and to favour ACP bananas), European banana legislation introduced an import tax on Dollar bananas, moderating their importation, in 1993. This, obviously, led to hefty protests from Latin America, considering the tax an example of uneven competition. Now, the EU seems to have buckled, and recently agreed to a phased decrease of the tax. In spite of objections, the decision hasn’t harmed the ACP banana.

In all, increased regulation seems to have a positive effect on the banana trade in general. Several new countries, like Peru and Guatemala, are furtively entering the sector. Peru in particular, has jumped on the biological bandwagon, producing biologically cultivated bananas from the start. Other, quite unexpected producers include Brazil, China and India. However, importers caution that these countries have yet a long way to go. Politics and the lack of proper knowledge hinder a full-scale import from these regions.