WASHINGTON, D.C. -- United States Senator Daniel K. Inouye announced today that the Appellate Body of the World Trade Organization (WTO) in Geneva, Switzerland confirmed the findings of an earlier WTO decision that the European Union's (EU) banana import policies violate international trade agreements.

"The EU's policies restricting imports of bananas from Latin America have resulted in an inordinate supply of Latin bananas in the U.S. market, thus driving down U.S. banana prices to such a degree that even banana producers in Hawaii have been negatively impacted," stated Senator Inouye.

"I am pleased that the WTO's dispute resolution procedures are working to rectify this inequity, and I support the United States Trade Representative in seeking full compliance from the European Union in conforming its trade policies to WTO rules," continued Inouye.

The Hawaii Banana Industry Association and Chiquita Brands International had previously petitioned the United States Trade Representative (USTR) to investigate the EU's banana import policies. Upon determining that the EU regime was, in fact, discriminating against U.S. trade interests, the USTR joined with the governments of Ecuador, Guatemala, Honduras and Mexico in seeking WTO intervention. Under WTO rules, there is no further avenue of appeal for the EU in this case. The report of the WTO Appellate Body will be adopted on September 25, 1997, after which the EU is required to conform its banana import policies to international trade agreements. If the EU fails, the U.S. and other complaining governments may seek sanctions against the EU.