END OF THE BANANA "WAR"-CHANGING ATTITUDES

The great "Banana War" between Europe and the American countries regarding preferential treatment given to imports of Banana given to its former colonies by EU, began in the year 1993 The issue, in spite of arbitration by world bodies like GATT and WTO, did not lend itself to any amicable settlement which was supposed to have caused economic damages to some of the South American banana exporting countries. As most of the banana cultivation is controlled by the US based multinational companies, it became a trade "war" between the EU and the US. In a recent landmark settlement through bilateral negotiations, the issue was resolved after EU agreed to lower the import tariff for fruits originating in Americas by 35% over a period of 7 years. "One thing we have learned over the past 15 years is that trade is necessary but not sufficient for development. Countries also need investment in infrastructure, technology and human capital. They need credit. They need legitimate institutions — like clean courts to battle monopolies — and help building them. Putting up a few barriers against banana imports, or tearing a few of them down, can't do it all". The free market mantra that trade is the "be all and end all" seems to have lost its gleen as reflected by countries like Mexico and others which continue to languish without attaining the elusive prosperity as hoped for. Unless massive injection of capital is mobilized for all round development, there is very little chance for these countries to enjoy real freedom from hunger and poverty. V.H.POTTY http://vhpotty.blogspot.com/ http://foodtechupdates.blogspot.com