The European Union (EU) gave an unpleasant New Year´s gift to the banana producing countries (specially Colombia and Ecuador). This year began with an increase on the banana tariff regarding the exports of this fruit to Europe. Beginning yesterday (01.01.2006), it will be 134% more expensive to export bananas to the EU. This decision was made by the EU in order to protect the producers of their old colonies in Asia and the Pacific.
This is a terrible news for colombian banana producers, who rely heavily on the EU: the final destination of 65% of their production. Colombia has around 300 producers who employ 100,000 families which are now afraid that this decision of the EU will force companies to downsize their personel.
Last year more than 86 million boxes each containing 18,14 kilos of bananas where exported from Colombia. This year analysts are expecting a reduction around 4% (both in value and volume). Many producers fear that they will only be able to hold on for the first 6 months of the year. Exageration? hmmm... maybe, but then again, increasing the banana tariff from 75€ to 176€ , and consequently affecting negatively more people than the ones that they help seems insane.
