BUSINESS & ECONOMICS

Banana Split Between Europe and Latin America

The vast, industrial-scale banana plantations of Central America and Ecuador, are intensively farmed, heavy on pesticides and pollutants, and are owned by big American corporations whose influence on the politics of those countries is questionable.

By CHRISTOPHER HART

The angry disagreement between Europe and the Americas over the price of bananas showed no sign of abating this week, despite the European Union announcing a lower import tax on Latin American bananas.

From January 2006, the EU will levy an import tax of 230 Euros ($290) per metric tonne of bananas imported from Latin America. No such tax is levied on Caribbean bananas. Latin American nations are already protesting at what they regard as unjust protectionism, whereas the smaller-scale, almost cottage-industry banana growers of the Caribbean are protesting that the tax is too low, and that competition from such giants as Costa Rica, Honduras and Ecuador is putting them out of business. They further point out that Latin America already has 60% of the European market share, whereas the ACP nations (African, Caribbean and Pacific) only have 20%.

At the beginning of December there is to be an emergency summit in Quito, Ecuador, attended by the presidents of Ecuador, Honduras, Costa Rica, Colombia and Panama, to decide upon further challenges to European policy. Ecuador has already demanded that the EU lower its tariff to only 75 Euros ($95) a tonne, which would almost certainly threaten the entire economies of several ACP nations. Costa Rican President, Abel Pacheco, has condemned the EU announcement as 'one of the greatest injustices,' adding proudly, 'our banana is a superior product to that of any other country.'
The conflict has its roots in two sorts of imperialism: European imperialism of the past, and the economic imperialism of the United States today. The European powers, especially Britain and France, remain loyal to their former colonies in Africa, the Caribbean and the Pacific - the so-called ACP banana producers. They are willing to pay a higher price for better-quality bananas, grown on small, family-owned farms in such island paradises as Grenada, St Lucia and Dominica.

The vast, industrial-scale banana plantations of Central America and Ecuador, on the other hand, are intensively farmed, heavy on pesticides and pollutants, and are owned by big American corporations whose influence on the politics of those countries is questionable. The European nations also argue that ACP workers enjoy better working conditions than their Latin American counterparts. As a result of European consumers paying a higher price - some might say a fairer price - for their bananas, their Caribbean producers are paid double what workers in Central and South America receive.

Meanwhile, attempts by a Costa Rican banana workers' co-operative to embark upon the production of an organic banana crop were stymied when Dole produced a title deed claiming ownership of the 70 hectare plot where the enterprise was planned. The title deed subsequently proved to be a fake. More recently, Honduran banana workers secured compensation for damage to their health from unsafe pesticides, and 6,000 Costa Rican workers who have similarly been rendered sterile for life are currently awaiting a similar decision in the US courts.

The US has used the World Trade Organisation to challenge Europe's protectionism of its fomer colonies - even though the US itself is barely a banana-producer at all, with an annual production of only 50,000 tonnes. Honduras exports around 800,000 tonnes of bananas a year, and Ecuador a massive 5.4 million tonnes.

Behind the US's representations to the WTO lie corporate pressure and the shadowy world of political lobbying and lavish donations in Washington. The big three US banana companies, Dole, Del Monte and Chiquita, are all descendants of the United Fruit Company, and owners of vast tracts of land in Central and South America. Between them they control a staggering 80% of the world banana market; but they are demanding more. The US' vigorous campaign for more favourable trade terms for its own corporations, however damaging to smaller banana-producing countries, may not be unrelated to such donations as Chiquita's generous $5 million to both Republican and Democratic parties in 1995.

Three Things You Never Knew About Bananas:
The banana isn't a fruit - it's a herb.
Eating bananas makes you more likely to be bitten by mosquitoes.
Bananas contain a chemical called tryptophan which the body converts into the feel-good neurochemical, serotonin. So bananas make you happy. (Apart from the extra mosquito bites you get, of course.)

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2005 Budget will Surpass 75 Thousand Million

William Chong Wong, Finance Minister, during his presentation of “Informe a la Nación” (Report to the Nation) of the Economy Cabinet, revealed that the General Budget of Incomes and Outcomes of the Republic suggested for next year will reach 75, 390 million 600 thousand Lempiras.

The budget suggested for 2005 registered an increase of almost 19% in relation to the one approved by the National Congress in 2004, which was 63,196 million 700 thousand Lempiras.

In conclusion, the new budget, remitted to the Legislative Power since September 13, 2004, observes and increment of 12,193 million 900 thousand Lempiras.

According to the financial document, the budget for 2005 was formulated with the desegregation of executing units and their geographic location, choosing as test pilots the Secretaries of Education, Health, Finance, Shelter and Transportation, and Agriculture, with the purpose of measuring the accomplishment of the objectives through concrete goals and identifying the ones responsible for their accomplishment. La Tribuna

Approbation of the FMI is close to forgiving us

With the consent of the third exam of the political ministers that brought about the International Monetary Fund (FMI), Honduras continued to be included in next years initiative for poor countries with a lot of debt in a technical mission of the FMI.

‘The government has significantly advanced in its objective to bring a point of culmination in the initiative for poor countries in the first trimester of the next year’ it was noted. ‘the objective to increase economic standards by 4%, projected for this year will follow’ The precise mission of the FMI evaluated complimented the compromises against the government of Ricardo Maduro in a letter of intentions signed in February. El Heraldo

Rice Produciton Increases by More than 200 Quintales

In accordance with the projections of the millers and rice growers of Honduras, it is believed that for the present year the production of rice will exceed that of 2003 by more than 200 quintales.

The president of the millers of Honduras, Michael Hawitt, declared that the producers are investing many resources in the current crops and it is hoped that production could reach 750 thousand quintales.

" It is necessary to take into account that there is a heap of new producers and others that had stopped sowing rice and now they have returned to the field ", he said.
Hopefully gain crops should inprove as last year produces confronted several problems resulting in barely 500 quintales.

"This year there will be 750 thousand quintales and we hope that if things continue in the same form, we might pproduce a million quintales in 2005 ", he said.

Hawitt indicated that it is necessary to take into account that big companies such as the sugar industries, are designating part their land to sow rice instead of cane, due to the fact that the prices of the grain on the markets produce superior profits. - La Tribuna.

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Commercial Deficit Reaches 1, 664 Million Dollars

Tegucigalpa. According to the report presented by the Central Bank of Honduras, the commercial balance has reached 1, 663.9 million dollars from January to September of this year.

The above mentioned is explained in the behavior of the exportations and importations in what goes of this year.

Exports
The exportations reached an increase of 17.4 %, regarding the 16% of 2003. During the analyzed period of time, the export value of bananas, coffee, wood, silver, steel, zinc, soap and detergents increased due to the increased sale volumes and their prices. On the other hand, the export value of sugar, shrimp, lobster, tilapia, legumes and vegetables increased in volume, although their prices decreased.

Imports
The imports increased 20.5% in relation to the report of 9.5% in 2003. This behavior is the result of an increment of 311.3 dollars in the imports of capital wealth, prime materials, and intermediate products destined for the industry, used for the installation of energy generators and telephone lines. On the other hand, the acquisition of fuels and lubricants added up to 474.5 million dollars and the import of consumption products reported an increase of 4.6%. La Tribuna.

PEMEX Will Not Lower the Market Price

Tegucigalpa. According to its functionaries, the future presence of Mexico Petroleum (PEMEX) is not going to generate ant competition or change in the cost of fuel whatsoever in the nation.

“We have a totally regulated market,” said Sarahí Silva, executive director of the Honduran Association of Petroleum Products Distributors (ADHIPPE). “Our consumption is barely of 500 million gallons per year, taking into consideration that the industry and the thermal companies consume most of it.”

Silva sustained that even if the national consumption has increased 11% in what goes of this year, the saturation of the market will increase due to the amount of existing distributors.

She added that it could not generate more competition because the market is rightfully concentrated and 96% of the commercialization of fuel is in hands of five companies and the resting 4% is handled by the rest.

The problem is that the majority of the gas stations has a an exclusive buying contract, that ranges between 10 and 15 years, with the petrol companies and have no freedom to acquire fuel from other company. La Tribuna.

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