European Communities - Regime for the Importation, Sale and Distribution of Bananas, complaints by Ecuador, Guatemala, Honduras, Mexico and the United States (WT/DS27): Report of the Appellate Body

Summary

INTRODUCTION

The European Communities and Ecuador, Guatemala, Honduras, Mexico and the United States (the “Complaining Parties”) appeal from certain issues of law and legal interpretations in the Panel Reports, European Communities - Regime for the Importation, Sale and Distribution of Bananas (the “Panel Reports”). The Panel was established on 8 May 1996 to consider a complaint by the Complaining Parties against the European Communities concerning the regime for the importation, sale and distribution of bananas established by Council Regulation (EEC) No. 404/93 of 13 February 1993 on the common organization of the market in bananas (“Regulation 404/93”), and subsequent EC legislation, regulations and administrative measures, including those reflecting the provisions of the Framework Agreement on Bananas (the “BFA”), which implement, supplement and amend that regime. The relevant factual aspects of the EC common market organization for bananas are described fully at paragraphs 3.1 to 3.36 of the Panel Reports.

The Panel issued four Panel Reports that were circulated to the Members of the World Trade Organization (the “WTO”) on 22 May 1997. The Panel Reports contain the following conclusions:

With respect to Ecuador, in paragraph 9.1 of the Report, WT/DS27/R/ECU, the Panel concluded:

… that for the reasons outlined in this Report aspects of the European Communities' import regime for bananas are inconsistent with its obligations under Articles I:1, III:4, X:3 and XIII:1 of GATT, Article 1.2 of the Licensing Agreement and Articles II and XVII of the GATS. These conclusions are also described briefly in the summary of findings.

With respect to Guatemala and Honduras, in paragraph 9.1 of the Reports, WT/DS27/R/GTM and WT/DS27/R/HND, the Panel concluded:

… that for the reasons outlined in this Report aspects of the European Communities' import regime for bananas are inconsistent with its obligations under Articles I:1, III:4, X:3 and XIII:1 of GATT and Article 1.3 of the Licensing Agreement. These conclusions are also described briefly in the summary of findings.

With respect to Mexico, in paragraph 9.1 of the Report, WT/DS27/R/MEX, the Panel concluded:

… that for the reasons outlined in this Report aspects of the European Communities' import regime for bananas are inconsistent with its obligations under Articles I:1, III:4, X:3 and XIII:1 of GATT, Articles 1.2 and 1.3 of the Licensing Agreement and Articles II and XVII of the GATS. These conclusions are also described briefly in the summary of findings.