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EC BANANA III Write up.docx

EC BANANA III Write up.docx

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write up on the Banana War
write up on the Banana War

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Categories:Types, Business/Law
Published by: Deboshree Ritambhara Banerji on May 08, 2013
Copyright:Attribution Non-commercial

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07/23/2014

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1
EC
 – 
BANANA III
 REPORT SUBMISSION ON THE CASE ANALYSIS 
INTRODUCTION
The signing of the agreement on November, 8, 2012 marked an historic moment for theEuropean Union and the ten Latin American countries, since it ended twenty years long battleover banana dispute. The agreement so signed between the states settled the longest runningseries of dispute in the history of the multilateral trading system.
In words of Pascal Lamy, the Director General of the WTO, “This is a truly historic moment.
After so many twists and turns, these complicated and politically contentious disputes canfinally be put to bed. It has taken so long that quite a few people who worked on the cases,
 both in the Secretariat and in member governments have retired long ago.”
 The banana issue is one of the longest running disputes in the post-World War II multilateraltrading system. It has generated considerable debate and litigation among the widest range of the entire WTO membership. And it has resulted in multiple legal rulings by dispute panels,the Appellate Body and special arbitrators. All this attention has focussed on the treatmentthe EU gives to the import of bananas from the African, Caribbean and Pacific (ACP)countries in preference to bananas from Latin America. The final, comprehensive agreementwas announced on November, 8, 2012.
a)
 
COMPLAINANT:
Ecuador, Guatemala, Honduras, Mexico and United States.
b)
 
 RESPONDENT 
: European Union.
 c)
 
 AGREEMENTS CITED
: Agriculture (Art 19); GATS (Art II)(Art IV) (Art XIV)(Art XVII); GATT 1994 (Art I) (Art II) (Art III) (Art X) (Art XI) (Art XIII);Import Licensing (Art 1) and (Art 3); TRIMS (Art 2) and (Art 5).
 
For the purpose of lucidity, I have divided the case into three parts, viz.,1.
 
 EC- Regime for the Importation, Sale and Distribution of Bananas
;2.
 
 European Communities
 – 
Regime for the Importation, Sale and Distribution of  Bananas
 – 
Recourse to Article 21.5 of the DSU by Ecuador 
; and
 
2
3.
 
 European Communities
 – 
Regime for the Importation, Sale and Distribution of  Bananas
 – 
Second Recourse to Article 21.5 of the DSU by Ecuador; and EuropeanCommunities
 – 
Regime for the Importation, Sale and Distribution of Bananas
 – 
  Recourse to Article 21.5 of the DSU by the United States
Each of these are detailed below:
EC- Regime for the Importation, Sale and Distribution of Bananas
1.
 
COMPLAINANT:
Ecuador, Guatemala, Honduras, Mexico and United States.2.
 
 RESPONDENT:
European Communities.3.
 
 AGREEMENTS:
a.
 
GATT :i.
 
Article I (General Most Favoured Nation Treatment),ii.
 
Article III (National Treatment on Internal Taxation and Regulation),iii.
 
Article X (Publication and Administration of Trade Regulation),iv.
 
Article XII (Restriction to Safeguard the Balance of Payments). b.
 
GATS:i.
 
Article II (Most Favoured Nation Treatment),ii.
 
Article XVII (National Treatment).c.
 
Licensing Agreements: Article 1.3, which states, “
The rules for import licensing procedures shall be neutral in application and administered in a fair and equitable manner.
 d.
 
Lomé Waivers4.
 
 PRODUCT AT ISSUE:
Bananas imported from the third countries, ie, those countriesother than (i) 12 African, Caribbean and Pacific ("ACP") countries who havetraditionally exported bananas to the European Communities and (ii) ACP countriesthat were not traditional suppliers of the EC market.5.
 
 MEASURE AT ISSUE:
The European Communities' regime for the importation,distribution and sale of bananas, introduced on 1 July 1993 and established by EECCouncil Reg. 404/93.6.
 
TIMELINE:
 a.
 
Establishment of Panel: 8 May 1996. b.
 
Circulation of Panel Report: 22 May 1997.c.
 
Circulation of AB Report: 9 September 1997.
 
3d.
 
Adoption: 25 September 1997.
European Communities
 – 
Regime for the Importation, Sale andDistribution of Bananas
 – 
Recourse to Article 21.5 of the DSU by Ecuador
1.
 
COMPLAINANT:
Ecuador.2.
 
 RESPONDENT:
European Communities.3.
 
 AGREEMENTS:
a.
 
GATT :i.
 
Article I (General Most Favoured Nation Treatment),ii.
 
Article XIII (Non
 – 
Discriminatory Administration of QuantitativeRestrictions). b.
 
GATS:i.
 
Article II (Most Favoured Nation Treatment),ii.
 
Article XVI (Market Access).4.
 
 PRODUCT AT ISSUE:
Bananas imported from the third countries, ie, those countriesother than (i) 12 African, Caribbean and Pacific ("ACP") countries who havetraditionally exported bananas to the European Communities and (ii) ACP countriesthat were not traditional suppliers of the EC market.5.
 
 MEASURE AT ISSUE:
EC Regulation No. 1637/98 which was adopted to amendRegulation (EEC) No. 404/93
 – 
the measure at issue in the original dispute
 – 
together with EC Regulation No. 2362/98, which laid down implementing rules for theamended Regulation. The Regulation pertained to imports of bananas into theEuropean Communities and access to the EC market for three categories of bananas.6.
 
TIMELINE:
 a.
 
Referred to Original Panel: 12 January 1997. b.
 
Circulation of Panel Report: 12 April 1999.c.
 
Circulation of AB Report: NA.d.
 
Adoption: 6 May 1999.
European Communities
 – 
Regime for the Importation, Sale andDistribution of Bananas
 – 
Second Recourse to Article 21.5 of the DSU byEcuador; and European Communities
 – 
Regime for the Importation, Sale

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