The UK's recent tariff reductions for banana imports from Peru and Mexico have raised concerns among African, Caribbean, and Pacific (ACP) nations. Previously, as part of the EU, the UK provided favorable trading conditions for ACP nations, offering duty and quota-free exports. However, the tariff reductions for Peru and Mexico, with costs dropping from £62/1000kg to £40/1000kg for up to 8000 tons of bananas, have sparked worries about the impact on ACP producers.
The Afruibana association, representing fruit producers and exporters in Côte d’Ivoire, Cameroon, and Ghana, expresses concerns about the potential for similar concessions to be granted to major Latin American banana producers – Ecuador, Costa Rica, and Colombia. If granted, these concessions could lead to significant savings for Latin American producers, giving them disproportionate bargaining power in negotiations with UK supermarkets. This, in turn, could disadvantage smaller African producers in the UK market, where a few retailers dominate banana sales.
Currently, bananas from African and Caribbean origins make up around 18% of the UK market, with the Dominican Republic, Côte d’Ivoire, and Ghana being leading suppliers. While these figures are similar in the European market, bananas are the world's most exported fruit and play a crucial role in providing stable employment in rural areas.
The banana industry relies heavily on manual labor, which accounts for over 40% of total production costs. Unlike other fruits, bananas produce year-round, providing a reliable monthly income for workers. The concerns raised highlight the potential challenges for ACP nations as the UK navigates its post-Brexit trade policy.
Source: www.bananalink.org.uk