16 Dec 2009

Deal ends 'banana wars'

7:40 am on 16 December 2009

The European Union has agreed a deal to cut tariffs on banana imports, signalling the end of the world's longest-running trade dispute.

Banana producers in Latin America will be subject to lower EU import tariffs as a result.

The BBC reports this should make them more competitive with producers in Africa and the Caribbean, who pay no tariff. The price consumers pay for bananas could fall by 12% as a result.

Duty on imported bananas will be cut from 176 euros ($US256) per tonne to an initial 148 euros ($US215). Further cuts will be made on an annual basis over the next seven years to 114 euros per tonne.

The deal was being "initialled" in Geneva on Tuesday afternoon by various trade representatives.