Dec 15 (Reuters) - The European Union and Latin American fruit exporters initialled an agreement on Tuesday on the EU banana import regime as one of a series of deals ending the long-running trade dispute over bananas.
The following are details.
* Once the agreement is formally signed -- probably in 6-9 months -- the EU tariff on bananas from the Latin American countries will fall to a maximum 148 euros ($215.2) per tonne from 176 euros, with retroactive effect from Dec. 15.
The price will then be cut in seven stages at the start of each year, with retroactive effect if necessary, to a maximum 114 euros at the start of 2017.
This phasing can be delayed for up to 2 years if there is no outline agreement in the World Trade Organisation's Doha round by the end of 2013.
* Once the new tariffs are formally certified with the WTO -- a process that can take several months or longer -- the Latin American countries will drop outstanding disputes over bananas against the EU.
The Latin American producers will not take any further action related to those disputes pending certification of the new tariffs, provided the EU is following the phased tariff cuts and has notified them to the WTO.
* The tariff cuts will be the EU's final commitment for bananas in the Doha round or the WTO's next trade round -- in other words the EU will not be expected to make further cuts in the tariffs.
* The Latin American parties to the deal are Brazil, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Peru and Venezuela.
* The agreement is linked to a further deal between the EU, Latin American producers and former European colonies in Africa, Caribbean and the Pacific (ACP countries) governing the EU's commitments in a future Doha agreement on tropical products and preference erosion.
Tariffs on tropical products (of interest to Latin American producers) will be cut faster and more deeply than on other agricultural products. Tariffs on preference erosion products (of interest to ACP countries enjoying preferential access to the EU market for their produce) will be cut less and more slowly. This agreement clarifies what is on each list.
It is also linked to a promise by the EU to grant the ACP countries up to 200 million euros in aid to help them adjust for the loss of market opportunities in bananas as a result of the tariff cuts for their Latin American producers.
It is also linked to a deal settling outstanding disputes over bananas brought by the United States against the EU. (Compiled by Jonathan Lynn)