CCP: BA/TF 01/8

Table of Contents

I. INTRODUCTION

II. COUNTRIES WITH ZERO TARIFFS

III. COUNTRIES WITH IMPORT DUTIES

IV. CONCLUSIONS

I. INTRODUCTION

1. As part of its ongoing monitoring of developments in banana trade policy, the Secretariat has gathered data on import regimes in countries outside the European Community. Table 1 attached to this document summarizes import measures, implemented by 24 importers of fresh bananas. These measures include tariffs, quantitative restrictions, and other trade regulations, such as sanitary and phytosanitary requirements. Tariffs and quantitative restrictions afford protection to domestic banana production though at the expense of higher prices to consumers and reduced consumption levels. The table also shows internal taxes and other charges, although in most countries these are common to all fruits rather than specific to bananas. The data assembled here are drawn from WTO sources, questionnaires sent by FAO to Member Governments and The International Customs Bulletin. Members of the Sub-Group are invited to comment upon the data presented, and to provide information on any recent changes in their national banana trade policies.

II. COUNTRIES WITH ZERO TARIFFS

2. Several countries have no import tariffs on bananas but apply internal taxes or charges or other restrictive measures.

3. In Norway and New Zealand bananas are only charged the same percentage taxes as competing fruits. Both countries have relatively high per caput levels of banana consumption.

4. Imports into Libya are channelled through a single import organization which attempts to control import volumes in line with demand.

5. Based on phytosanitary concerns, Australia effectively applies quarantine measures to the import of bananas. This policy has been challenged by the Philippines, which is desirous of exporting fresh bananas to Australia. A joint commission composed of Australian and Philippine experts is now studying the situation in the Philippine banana growing/exporting region, concentrating on disease and phytosanitary issues. There has recently been a fairly widespread outbreak of Black Sigatoka in the Tully Valley of Australia, a major banana growing region.

III. COUNTRIES WITH IMPORT DUTIES

A. COUNTRIES WITH IMPORT DUTIES, INTERNAL TAXES AND OTHER RESTRICTIONS

6. Tunisia and Morocco apply high duties on bananas (100 percent in the case of Tunisia) plus internal taxes and other import restrictions. Tunisia requires imports to be licensed. Morocco periodically imposes import license requirements on bananas according to the domestic supply situation. In effect, only if domestic banana production is insufficient to meet consumer demand are import licenses made available.

B. COUNTRIES WITH IMPORT DUTIES AND INTERNAL TAXES

7. Among the countries imposing import duties and internal taxes are Algeria, Argentina, Japan, Poland and Uruguay. These import duties range from very low specific and ad valorem levels in Uruguay to duties of 45 percent in Algeria.

C. COUNTRIES WITH ONLY IMPORT DUTIES

8. Those countries employing only import duties on bananas include Bulgaria, Chile, China, Cyprus, Egypt, Hungary, Malta, Republic of Korea, Russian Federation, Saudi Arabia (Kingdom of) and Switzerland. However, these tariffs cover a wide range, from as little as 5 percent ad valorem in the Russian Federation to a combined rate in Cyprus of 41.2 percent plus US$1 213 per tonne for imports from non-EC countries. In a lower range are Peru (25 percent), Hungary (14-25 percent), Saudi Arabia (12 percent), Poland (0-20 percent, plus a value added tax), Chile (10 percent) and Bulgaria (7-10 percent). In the upper range are Egypt (60 percent), Republic of Korea (70 percent) and China (25-40 percent).

IV. CONCLUSIONS

9. A review of per caput banana consumption for the countries listed in this document reveals a direct relationship between high import barriers of a tariff, TRQ or regulatory nature and low per caput consumption of bananas. Importers with low or no barriers and only internal taxes tend to have high average per caput consumption (e.g. Chile, Malta, New Zealand, Norway, Switzerland and Uruguay). On the contrary, countries with high access barriers have low average per caput banana consumption (e.g. China, Libya, Morocco and Tunisia) (Table 2 provides data on per caput imports in non-producing countries). However, it should be kept in mind that in some banana importing countries on the list, economic circumstances, such as low GDP per caput are a major factor inhibiting banana consumption, while in others consumption is actually concentrated in coastal or urban areas because of transport constraints. Based on internal Egyptian production between 1993 and 1999 average consumption is calculated to be about 5.8 kg per caput. Similarly, Australia's consumption, based only on internal production for the marketing year 1999/2000 is calculated to be about 9.2 kg per caput. Per caput data for Algeria and Cyprus is not available.

Source: Banana Statistical Questionnaire - The International Customs Journal "Bulletin International des Douanes")

Table 2 - Bananas - per caput net imports