The EU and US have agreed a deal with Latin American, African and Caribbean nations ending a decades-old trade war over bananas.
The pact ends the world's longest-running trade dispute and also removes a potential obstacle to a new deal to open global commerce in the World Trade Organisation's eight-year-old Doha round. Final signature is expected to take place next year.
Under the deal, the EU - the world's biggest importer of bananas - will cut the duty it applies to bananas from Latin American countries such as Ecuador and Costa Rica which have long complained of discriminatory treatment.
It will also give aid of about €200m to banana growers in certain African, Caribbean and Pacific countries.
These mainly former European colonies currently enjoy preferential treatment on exports to the EU and will see their relative advantage eroded under the deal. The aid package is meant to help them to adjust.
Bananas are a key export and economic cornerstone for many countries including Cameroon and Dominica. Although the US does not export bananas, it is a party to the deal because major distributors of the fruit Chiquita, Del Monte and Dole are US corporations. Ireland's Fyffes is also an important distributor.
The agreement is good news for consumers in the EU as well as banana producers in Latin America as it stands to increase supplies of cheap fruit.
Because the deal must be approved by the EU's 27 member states, requiring translation into 23 official languages, it may be six to nine months before signature is possible.
In return, Latin American banana producers and the US will drop legal challenges to the EU over its banana regime, which has been repeatedly condemned by WTO courts for discriminating against the Latin American growers.
