EU: Trade Agreement on Banana Imports

Baroness Benjamin Excerpts

Tuesday 7th February 2012 Lords Chamber

[Baroness Benjamin]

My Lords, I, too, thank my noble friend for securing this debate. We must never forget the vast wealth that the Caribbean provided for Europe, yet EU agreements and those that will be negotiated in years to come will further erode the benefits that the Caribbean has enjoyed as a preferential trading partner of the UK and Europe because of these historic and cultural ties.

This leaves one wondering whether the UK and Europe actually care about the Caribbean any more. Policy decisions taken in recent times on sugar, bananas and more recently on tourism in the form of the unfair UK air passenger duty, seem to reflect a lack of understanding or perhaps interest in the impact of UK and European policies on Caribbean economies and Caribbean people. That is what seems to be happening once again with the new EU trade deals involving bananas. There is a real threat facing the banana growers of the Caribbean who are desperately trying to make an honest living for themselves and their families. The agreements already in place are harming small island states in the Caribbean, especially the Windward Islands, which in the 1990s provided around 40 per cent of the UK’s bananas, but now only 8 per cent. The figure has gradually been whittled away by the import of lower-cost bananas from Latin America, picked by low-paid workers. This will only be made worse with the new EU trade deals with Columbia and Peru.

While the EU has not stood by its commitment to protect the region’s banana growers, the organisation Fairtrade has helped thousands of farmers to protect their livelihoods by securing a market for their bananas. This market has grown from 30 per cent in 2004 to over 90 per cent in 2009. The challenge now is to maintain sales to the UK’s Fairtrade banana market as well as developing additional markets for other fruit products from the islands. But there are now only around 3,500 farmers compared with 27,000 in 1992. High unemployment, youth unrest and poverty are real threats now facing the island communities. The islands have also been hit by a series of natural disasters, but the resilience of the farmers has meant that banana production could continue because they were able to turn to the Windward Islands Farmers’ Association and use the disaster fund they had put aside as a result of Fairtrade premiums. Thanks to Fairtrade, farmers have been given a lifeline and are now empowered. They also receive more money for their bananas, helping them to diversify and develop sustainable livelihoods for themselves and their children in the future. It is morally wrong for us to be part of a regime that takes all this away from them. It has been a struggle for survival. Income has declined from just over £1.5 million in 2009 to £150,000 in 2011. So the key to helping their survival is for companies, retailers and the public to buy Fairtrade Windward Island bananas. We can all make a difference in our own way.

What can the UK Government do to help? It was good to hear Foreign Secretary William Hague hint at the 2012 UK Caribbean Forum that he wants a new era promoting prosperity, growth and development between the UK and the Caribbean, but this will be difficult for Caribbean banana farmers as the EU has offered just €190 million to all banana farmers across three continents to be shared between nine countries as compensation for going back on commitments. This is clearly insufficient to cover the costs of adjustment. And astonishingly, almost two years after the money was promised, there is still no sign of it. Also, the banana accompanying measures resources are now being given directly to Caribbean Governments, which means that small farmers in the Windward Islands who are in desperate need are not able to access the BAM directly. This is another blow to Caribbean banana growers.

The Caribbean needs sustainable economic development to create the jobs and growth that will assist the transition from developing to developed countries. They want a hand up and not a hand out. Let us not take away with one hand and give aid funding with the other. People need to retain their dignity, pride and self-worth. Therefore we need to consider what can be done to support the Caribbean in adapting to new trade regimes. I would like to ask my noble friend the Minister what action the Government have taken, first, to ensure rapid payment of the elusive banana accompanying measures. Secondly, they should support the transfer of BAM funds directly to producers in the Windward Islands. Finally, they should top up the outstanding amounts from unallocated money from other EU funding programmes.

Bananas were first brought to the Caribbean by the Europeans to feed the enslaved workers—my ancestors—500 years ago. Today they are a source of income for the Caribbean people, so let us show some compassion and consideration for our long-term loyal Caribbean friends and supporters by continuing to buy their bananas.