Banana Trade Flashcards
(12 cards)
Where are bananas mainly grown
Asia, Latin America, Africa
Largest producer - India and China but they also have a large internal market
Largest exporter - Latin America and the Caribbean
What percentage of exports are from Ecuador
23%
Where is most consumption
The EU and the US
EU is 50% of total imports
US is 18% (largest country)
Who dominates the trade of bananas
TNCs
-chiquita
-dole
-del monte
Together own 45% of market share
Can lead to inequality of profits, exploitation
How many bananas are grown each year
50 million tonnes
Large monoculture plantations - susceptible to disease
How popular are bananas in uk
Uks most popular fair trade product
How much money do retailers receive
Individual banana farmers receive around 5% of the final retail price of a banana sold in eu or uk supermarkets
What is fair trade
Fair trade is a trading partnership that aims to provide better prices, decent working conditions, and fair terms of trade for farmers and workers in developing countries
What was the banana trade war
A trade dispute during the 1990s between the EU and the USA over the EU’s preferential banana import agreements with former colonies in the Caribbean and Africa.
Why did the banana trade war start
The EU gave trade preferences (low tariffs) to Caribbean banana producers under the Lomé Convention, which the USA claimed unfairly disadvantaged its multinational companies like Chiquita and Dole.
What did the wto do
The WTO ruled in favour of the USA in 1997, saying the EU’s preferential treatment broke free trade rules, leading to trade sanctions and eventual changes to EU import policies
What were the outcomes of the trade war
•The EU had to reduce trade preferences.
•The US imposed $191 million in sanctions on EU goods.
•Caribbean economies suffered, especially small farmers
