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BRUSELLS, Apr. 11 (AFP) - The European Commission and the U.S. administration agreed this morning to solve the banana dispute changing the current import system -to the one preferred by the U.S.- to come into effect next July, said Pascal Lamy, European Trade Commissioner. THE EU and the United States came to an agreement in order to apply the licences adjudication system with historical references which will be based on the 1994 and 1996 operators' import quotas, said Lamy. This system will began on July 1st, when the U.S. sanctions against the EU will end. Thus, the EU changes its position approved last December, when it approved the licences adjudication system known as "first come first served". The European countries had also in mind to apply this system beginning in July 1st. The "first come first served" method had only the Ecuador's agreement. The new historical licences system is according to the Washington and the Latin American producing countries interests. Through this agreement the EU modifies the licences system to be applied beginning in July 1st until the year 2006, a transitory period in which the quotas and tariffs will coexist. Quotas will disapper beginning in the year 2006. This system will continue favouring the African-Caribbean-Pacific (ACP) area countries, which won't have to pay tariffs by virtue of the EU agreement. However its quota will be reduced regarding that foreseen in the "first come first served" method, as the EU believes a larger one is not used enough. Beginning in July 1st, the new licences system will came into force and the U.S. sactions to several European countries will be suspended. Following the EU will have to get the WTO wave in order to free the ACP countries from paying any tariff. After that, the Council and the Parliament could approved the new reduced quota system for the ACP. Lately, the whole system will be carried out, and the U.S. sactions will be finally abolished.
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