Banana prices are set to fall after the longest trade dispute in EU history was settled in Geneva today.
The change means banana prices in the EU will drop 11 percent while Latin American producers will see exports climb, said Giovanni Anania, a professor at the University of Calabria in Italy.
“The clear winner will be the Latin American countries, because they will expand their exports to the EU by roughly 17 percent,” he said in a telephone interview. “Total exports of bananas from Latin America to all markets will increase by 3.2 percent” while producers in African and Caribbean countries will see shipments of the fruit to the EU decline 14 percent.
Chiquita Brands International Inc. could get a $35 million boost from the settlement of a trade dispute between the European Union and Latin America.
The WTO summarizes the history of the dispute here.
