The European Union and Latin American countries have settled their differences over import tariffs on bananas. This brings to an end the decades long ‘banana war’, the world’s longest running trade dispute.

For years, Latin American countries, together with other smaller producers such as Thailand and the Philippines, have objected to the EU’s reduced tariffs on bananas imported from Africa and the Caribbean. The two sides have now agreed that the tariffs for their bananas will, in approximately six years, be lowered by a third. In exchange for this, complaints entered against the EU at the World Trade Organisation will withdrawn.

The agreement will probably lead to cheaper bananas for European consumers, increase competition in the banana market and strengthen the hand of low-cost Latin American exporters.

Photo of bananas by clairity (flickr)