World Trade in Bananas

These flashcards cover key terms and concepts related to the global trade in bananas, focusing on environmental, economic, and social issues.

Banana Nutritional Ranking

Bananas are the 4^{th} most important food crop in least developed countries, ranking only behind rice, wheat, and corn.

Energy and Staple Population

1. Nutritional Value
   • Contains approximately 90 kcal per 100g
2. Dependence
   • A staple food source for approximately 400 million people.

Global Export Statistics (2013)

With approximately 16.5 million tonnes exported in 2013, bananas are the world's most widely exported fruit.

The ACP Group Definition

An alliance of 79 Africa, Caribbean, and Pacific countries, primarily former European colonies, involved in the banana trade.

The 'Big Five' TNCs

The banana market has historically been dominated by five transnational corporations:

1. Chiquita
2. Dole
3. Del Monte
4. Fyffes
5. Noboa

Shift in TNC Market Share

The 'Big Five' TNCs saw their control over the export market drop from 60\% in 2002 to 45\% in 2013.

Modern TNC Business Strategy

Companies have shifted from owning plantations to managing logistics and branding to minimize financial risks and labor liabilities.

The Lomé Convention (1975)

A trade agreement between the EU and 71 ACP countries that provided duty-free import quotas to protect small-scale Caribbean farmers.

The 'Banana Wars' (1992-2009)

A 20-year trade dispute sparked by US-backed complaints to the WTO against the EU's preferential trade deals for ACP producers.

WTO Ruling on Trade Preferences

In 1997, the World Trade Organization ruled that the EU's preferential treatment of ACP countries was illegal, demanding a change in trade policy.

Geneva Banana Agreement (2009)

A 2009 settlement between the EU and 11 Latin American countries that resolved the 'Banana Wars' dispute. The deal mandated a phased reduction of EU import tariffs on 'dollar bananas' from €176tonne to€114 tonne by 2017.

The 'Race to the Bottom'

The relocation of plantations to lower-cost countries with minimal environmental and labor regulations to maximize profit margins.

Plantation Labor Conditions

1. Working Hours
   • Often include 10-12 hour days in tropical heat
2. Contracting
   • Increasing use of sub-contracted labor to avoid providing worker benefits

Fairtrade Financial Structure

1. Minimum Price
   • A guaranteed price to cover the cost of sustainable production
2. Fairtrade Premium
   • An additional 1 USD paid per box for social and economic investments

India's Role in Production

India is the world's largest producer (23\% of the global total), though most of its crop is consumed domestically.

Ecuador's Role in Exports

Ecuador serves as the world's leading exporter of bananas, shipping roughly 6.5 million tonnes annually.

Dominant Import Markets

The EU and the USA are the primary consumers, each importing approximately 27\% of the global total in 2013.

Environmental Waste Impact

The commercial banana industry produces 2 tonnes of waste for every 1 tonne of bananas successfully marketed.

Chemical Intensity of Monocultures

Commercial plantations utilize an average of 30kg of pesticides and fungicides per hectare every year.

Supermarket Price Wars

Large retailers (e.g., Walmart, Tesco) use bananas as 'loss leaders,' driving down retail prices and squeezing the income of producers and workers.

Special and Differential Treatment (SDT)

Preferential trade rules that grant developing nations (like the ACP)