Addressing the impact of preference erosion in bananas on Caribbean countries. A Report for DFID

Abstract

This report sets out to assess the impact on the Caribbean of the reform - or tariffication - of the EU Common Organisation of the Market in Bananas (COMB).

Part One of this study, by NERA, examines the impact of different tariff levels on theEuropean market, taking into account:

  • the competitiveness of the Caribbean
  • dollar zone production and competitiveness over the next decade
  • competition from other, mainly African, ACP producers
  • under different levels of tariff and at different stages in the marketing chain.

Part Two, by OPM, goes on to examine the development options for the Caribbean, picking up the NERA findings on the price impact of different tariff levels on individual countries, in particular:

  • impacts on the economy, in particular on production, exports and employment
  • potential strategies in response to changes in the COMB, including:
    -improved competitiveness
    -exit from banana production and
    -diversification
  • the nature of available development assistance
  • the arguments for and against additional financing
  • concluding with recommendations for future aid strategies.

Citation

NERA Economic Consulting, London, UK/Oxford Policy Management, Oxford, UK, 133 pp.

Addressing the impact of preference erosion in bananas on Caribbean countries. A Report for DFID

Updates to this page

Published 1 January 2004