April 1996-1998: Clinton Administration Files Complaint with WTO after Receiving Large Donation from Chiquita

Within 24 hours of the US Democratic Party receiving a $500,000 “donation” from Chiquita Brands International, the Clinton administration files a complaint with the WTO complaining about the EU’s banana trade policy with the Caribbean. [Guardian, 3/5/1999; Alternet, 2/6/2001] The US is opposed to the European Union’s quota system for Caribbean bananas which provides Europe’s former island colonies with a guaranteed market. The purpose of the quota system is to protect Caribbean growers from their regional competitors. Banana exporters in Central and South America tend to have lower production costs since they have large-scale, mechanized plantations that are often run by giant US-based corporations. The EU rule was aimed at enabling the countries’ economies to grow independently, without dependence on overseas aid. The EU, with 74 percent of its citizens willing to pay more for “fair trade” bananas, stands firm against the US challenge, making only a few small changes and leaving its quota intact. The US responds with punitive tariffs against the EU, forcing the EU to rescind its tariffs. [Oxfam, 3/1998; Guardian, 3/5/1999; Alternet, 2/6/2001]