The EU banana regime is assessed
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CTA. 2002. The EU banana regime is assessed. Agritrade, November 2002. CTA, Wageningen, The Netherlands.
Permanent link to this item: http://hdl.handle.net/10568/52596
The EU Court of Auditors issued a report on 'the sound financial...
The EU Court of Auditors issued a report on 'the sound financial management of the Common Market organisation for bananas' in October 2002. The report examines: the way in which the Commission devised and implemented the measures introduced to achieve the CMO's objectives; the way in which these measures have been managed by member states; the extent to which the objectives had been achieved. The Court found that the Commission had been successful in: harmonising the EU banana regime; ensuring free movement of bananas in the EU; maintaining consumer choice. However the report expressed concern about overpayment of aid under the income compensation scheme in the banana sector (total expenditure €1.2 billion since 1991). It furthermore found that virtually no premiums had been taken up to take land out of banana cultivation. Perhaps more significantly it identified weaknesses in the system of licensing and verification of imports which had resulted in a major fraud and the loss of some €160 million in uncollected duties. The Court did however note that the Commission was taking steps to address this problem. It further noted how the Commission was scheduled to carry out a major evaluation of the banana regime in 2004, and it urged the Commission to use this opportunity to carry out an objective assessment and fundamental review of current measures, and the future of banana production in the EU. Comment: In resolving the trans-Atlantic banana dispute the management of the licensing system was the key point of contention. Given the significance of the licensing issue to the whole banana dispute, the discovery of wide-scale fraud places past debates in a somewhat different light.