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The following text is intended for general reference only. It is currently under review for accuracy and completeness, as well as formatting.
Memorandum of
Understanding
Between Costa Rica and the
United States
Concerning Bananas
In the context of the termination of the U.S. section 301 investigation of Costa Rica's banana policies and practices, Costa Rica and the United States met in Washington on January 5th and 6th, 1996 and reached the following understandings.
1. The United States and Costa Rica share the objective of achieving expanded access to the EC market for Latin American bananas, Consistent with this objective and each party's international rights and obligations, the United States and Costa Rica agree to urge the EC to adopt a market-oriented regime in bananas at eh earliest possible date.
2. Following the adoption of any WTO panel aor Appellate Body report reviewing the EC banana regime, Costa Rica and the United States--within the context of the WTO and in their respective bilateral contacts with the European Commission and the member states--agree to urge the EC to bring promptly all aspects of its banana regime into conformity with the report's findings and recommendations.
3. Costa Rica and the United States agree to exert their best efforts at the ministerial level, both with the Commission and the member states, to convince the EC to remove any difference between A and B operators in the distribution of import licenses and export certificates.
4. The United States notes that Costa Rica has recently taken several steps to improve further the administration of its banana regime as reflected in Decree 24683-COMEX-MAG. First, the current 3.5 percent reserve for newcomers will be replaced over five years with a 2.5 percent reserve for producers who agree to new plantings. Second, the provision requiring marketing companies to maintain their banana purchases from independent producers has been eliminated. Third, banana growers that stop production will no longer be eligible to receive export certificates.
5. Costa Rica confirms that these measures will continue in force, and that it will not introduce any modification of its banana regime that would erode the improvements described in paragraph four. Costa Rica also confirms that, in accordance with its law, it will consult with interested parties regarding any proposed modifications.
6. Costa Rica and the United States agree to establish a consultative mechanism between the two countries to discuss these issues, including any proposed modifications by Costa Rica to the administration of its banana regime, and to contribute to a better understanding and cooperation on matters affecting banana trade.
SIGNED in Washington, D.C. on January 6, 1996:
___________________________
______________________________
For Costa Rica For the
United States
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