HL Deb 31 July 1998 vol 592 cc301-2WA
Lord Beaumont of Whitley

asked Her Majesty's Government:

What steps they propose to take to help Caribbean banana producers following the agreement of European Union agricultural ministers to end their preferential tariff regime. [HL3098]

Lord Donoughue

The Council of European Union Agriculture Ministers on 22–26 June agreed changes to the EU bananas regime to bring it into conformity with World Trade Organisation (WTO) rules whilst maintaining preferential access to the EU market for African, Caribbean and Pacific (ACP) bananas. This was one of the UK's Presidency priorities and the deal the Government secured honours both our commitments to ACP countries under the Lomé Convention and our obligations to the WTO; a declaration agreed by the Council recognised this.

Access for traditional ACP banana producers will be 857,700 tonnes at zero tariff, significantly above the current level of ACP sendings. The ACP countries have separately agreed to work together to ensure that the interests of the more vulnerable suppliers are not put at risk. Commonwealth Caribbean suppliers should now be able to export to the EU all the marketable bananas they can produce.

The operation of the revised import arrangements will be reviewed in 2004 but no date has been set for their termination. This should help to provide a reasonable period for the ACP suppliers to restructure their industries and improve their competitivity. Discussions on a new aid framework for the traditional suppliers are continuing. This should be agreed very soon.

Substantial financial assistance is already channelled to the Windward Islands via the EU: Stabex funds alone have exceeded 160 million ecu since 1992.