US embassy cable - 05TEGUCIGALPA733

UNCLAS TEGUCIGALPA 000733 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EB/TPP, WHA/EPSC, AND WHA/CEN 
STATE PASS AID FOR LAC/CAM 
STATE PASS USTR FOR AJOHNSON 
GUATEMALA FOR FAS SHUETE 
 
E.O. 12958: N/A 
TAGS: EAGR, ECON, ETRD, HO 
SUBJECT: HONDURAS: U.S. PRODUCER SAYS BANANA TALKS WITH EU 
"VERY MUCH ON TRACK" 
 
 
This cable is sensitive but unclassified and contains 
business proprietary information; not intended for internet 
distribution. 
 
1. (SBU) On April 1, EconChief spoke with Gerry Brunelle, 
Country Manager for U.S. firm Dole (a large banana producer 
in Honduras) about the ongoing negotiations with the EU over 
banana tariffs.  The EU is seeking tariffs as high as 230 
Euros, while Latin producers, including Honduras, continue to 
press for 75 Euros.  Current talks seek to name arbitrators 
to the dispute, following the failure of earlier multi-party 
talks to reach consensus on the tariff.  He said, "Contrary 
to press reports, the talks with the Europeans are very much 
on track."  Describing the March 31 talks, he praised the 
"consistency of the Latin positions," noting that the six 
major banana exporters of Latin America had stayed within the 
parameters previously agreed upon at recent meetings in 
Colombia.  Following the March 31 presentations, he said, the 
parties have 10 days to agree upon arbiters to the dispute. 
If they fail to do so, the World Trade Organization (WTO) 
then has five days to appoint the arbiters itself. 
 
2. (SBU) The Europeans, he said, are putting a lot of 
pressure on the system "to work as designed but as fast as 
possible."  In his view, the EU is seeking to minimize the 
inter-arbitration period in the hopes of resolving this issue 
before the upcoming WTO Doha Development Round meetings, to 
take place in Hong Kong later this year.  He said the EU has, 
therefore, made it clear that it will not accept any 
gradualist approaches.  (Note:  This position would appear to 
have the beneficial effect of further fortifying Latin 
solidarity by rejecting, at the start, gradualist approaches 
such as those floated by Ecuador in Colombia but rejected at 
that meeting by most other producers.  End Note.) 
 
3. (SBU) In summing up events as they stand, he said he sees 
"a much better picture than two months ago."  While he 
declined to speculate on the outcome of the current 
discussions or the likely decision of the arbiters (once 
appointed), he was clear that his company wants to see the 
process continue to move ahead briskly.  Comment:  Post will 
continue to monitor this issue as it develops and will report 
private sector and GOH views as events warrant. End Comment. 
 
Palmer 
Palmer