Ms Jennifer JonesTo ask the Secretary of State for International Development if she will make a statement on the World Trade Organisation's ruling on Caribbean banana imports to the EU and its impact on overseas aid to the Caribbean. [14048]
§ Clare ShortThe EU bananas regime represents a serious attempt to meet our obligations to our trading partners and developing countries. We are obviously disappointed that parts of it have been found incompatible with the WTO, but accept that the Community must now set about revising the EU arrangements to bring them into conformity with the WTO's rules.
The Government is considering the WTO findings on the EU banana regime in liaison with the Commission in Brussels, which have the principal responsibility for proposing a new WTO compatible regime. We intend to play a major role as leading advocates of the legitimate interests of those developing countries in the Caribbean which have traditionally supplied the UK market. They can rest assured that we have their interest high on our agenda.
The Windward Islands, already have large allocations of aid from the European Union under the Stabex facility. These are being deployed to strengthen the competitiveness of the banana industry, assist economic diversification and develop social safety nets. The case 94W for additional finance from the European Union will be examined as the implications of the WTO findings become clearer.