World's longest 'banana war' inches towards settlement: Report

LONDON: The world's longest-running trade dispute, involving bananas, may end this week with signing of an agreement between officials from European Union and Latin America, a report said.

The dispute started in 1993 with the EU granting preferential access to banana exporters from the former British and French colonies in Africa, the Caribbean and the Pacific - a move that Latin American exporters felt to be biased against them.

Since then, various banana exporting nations from Central and South America have been complaining against the EU policy as their produce, although produced at lower costs, were not getting to Europe because of various duty constraints.

The proposed deal calls for the EU to cut its banana tariffs from the current 176 euros (USD 262.20) per tonne to 114 euros, the Financial Times reported, adding that it could be signed as early as this week.

"The parties are still in talks with the US but are confident the same terms would win Washington's backing," said the report.

The so-called "banana wars" have generated much animosity and recriminations among the primary parties and within the 27-member EU.

According to EU officials, a sooner settlement would mean boosting of the sputtering Doha round of world trade tlaks by ironing out tariffs for dozens of tropical products. It could also clear the way for the EU to conclude free trade agreements with countries in Central and South America.