oktober 16, 2011

Join the Banana War

I have recently joined a fight of a global scale; a war that involves some of the world's major economic powers: the Banana War! To fully understand this trade conflict, it is necessary to take a look at its history first. The European common market may be internally open to competition, it has a firm tradition of protectionism. The common market was born in 1957 when the European Economic Community (EEC) was formally erected. France however feared it couldn't face the German competition. Therefore it demanded that the principle of the common market was applied to the agrarian production too. France after all is one of the most agricultural countries on the continent. To safeguard European domestic food supply, the EEC also decided to pull up barriers against food imports.

Just five companies control 80% of the world wide banana
trade. These are Dole, Del Monte, Chiquita, Fyffes and
Noboa. Don't support their exploitation-based monopoly,
Buy Fair Trade!
Now what could this possibly have to do with bananas? Believe it or not, but Europe is a producer. Spain has a small share in the EU's banana production, but the major source is again France. Easily overlooked are the French overseas territories and they practically live from banana cultivation. A lot of Europe's trading partners don't like the tariffs we handle since they give an unfair advantage to French bananas. Luckily for American multinationals, Europe has a demand for bananas which surpasses the own production capacity. The war only commenced once Europe altered its protectionist policies in favor of fair trade...

In 2001 the EU approved the "Everything But Arms"-ordinance. This nice piece of legislation granted a reduction in trade tariffs for the ACP-countries (former European colonies). For the Least-Developed Countries, trade tariffs were abolished altogether. Europe didn't demand any compensations in return, this action was inspired by ethics only! The Commission wanted to stimulate the position of fair trade products to aid the developing world. And indeed, the competitive advantage greatly reduced the price gap between fair trade bananas and the so-called 'dollar bananas'. The difference in your purse between buying Oxfam or buying Chiquita became marginal.

The big American concerns, who grow their bananas at big plantations in Latin America using cheap labour, were not amused. Like an adult whining over some candy given to children, they demanded tariff reductions for themselves too. The World Trade Organization already ruled that the EU falsifies competition and this doesn't sort with their neoliberal dogma. Only free competition between exploitation and fair trade can lead to a better world, say the big boys. Europe has to give up on its supportive measures for fair trade. In the future the price gap will certainly rise. I urge you all to join this war, you can all help make a difference. Corporate exploiters haven't won yet; please stop buying dollar bananas and give the South a chance! Buy fair trade!

6 opmerkingen:

Unknown zei

("peace of legislation" --> "piece")

Regaliorum zei

A standard mistake. Sounds the same in my head :p

Unknown zei

I know :D. Interesting blog! I think I'll discuss the whole "which bananas to buy" thing with my parents, one of these days. Hurray for fair trade!

Regaliorum zei

We buy Oxfam bananas for already quite some time, but the matter is becoming more urgent. Time to do some recruiting, I say!

Unknown zei

Aye aye captain!
(btw, I linked up your blog to mine - bottom left column; hope that attracts some more visitors to your "Swings"!)

Unknown zei

I see you made yourself a "favicon"? Nice work! :)