Government support effective in expanding Dominican Republic banana sector 

 

Government support effective in expanding Dominican Republic banana sector

23 April 2012

Press reports note that since 2004, banana production in the Dominican Republic has increased from 19 million bunches to nearly 34 million in 2011, an increase of 77.2%. In 2011 exports were valued at around US$200 million, with some 25,000 jobs being created directly and 300,000 indirectly.
The Dominican Republic is a leading exporter of organic bananas, with 90% of organic bananas going to European markets. According to President Leonel Fernández, in a speech to the National Assembly, government support has been critical to the development of the sector, taking the form of subsidies for tools, insecticides, land preparation and the promotion of technical innovation.
In Europe, a number of MEPs have ‘called for further clarification of how to apply safeguard clauses in trade with Central America, Colombia and Peru, so that European production, especially bananas’ is not harmed. Parliamentarians have called for a safeguard clause that is ‘effective and easy to apply’. This needs to be seen in the context of the legal requirement for Parliamentary ratification of these trade agreements under the Lisbon Treaty.

Sources

Elnuevodiario, ‘A raise in banana exports in the Dominican Republic’, 8 March 2012
http://www.freshplaza.com/news_detail.asp?id=93791
ABC News, ‘MEPs call for clarification of safeguards for Latin American bananas’, 7 March 2012
http://www.freshplaza.com/news_detail.asp?id=93760