Ecuador's banana industry is optimistic that a deal reached today between the South American country and the European Union will be a harbinger for improved tariff conditions.

Ecuadorian Trade Minister Francisco Rivadeneira told newspaper El Universo the agreement had been years in the making, and would still need to be approved by the European Parliament.

"After almost four years of work, today we have finally closed a balanced agreement with the European Union, which maximizes opportunities, reduces costs to a minimum, respects the country's development model and allows us to protect our most sensitive sectors," Rivadeneira was quoted as saying, after a meeting with EU Trade Commissioner Karel Gucht.

He said the toughest parts of reaching the deal were in the agricultural sphere.

Photo: Fotolia, Alexandro900

"We wanted to achieve the best situation for bananas, as we are the main supplier to the European market," the minister told the publication, emphasizing smallholder farmers would also be excluded from tariffs or would have safeguards.

Banana Exporters’ Association of Ecuador (AEBE) president Eduardo Ledesma described the deal as "marvelous" when speaking with www.freshfruitportal.com.

"The agreement that has been reached is tremendously positive for the banana sector, as we have had a very high tariff differential with the likes of Colombia and other competitors who pay €117 (US$158) per [metric] ton, while it's €132 (US$178.50) for us," he said.

"We are the main supplier for Europe and we're very content that we’ve reached an agreement and that the differentials will be reduced, and the possibilities to export will increase.

"In 2013 Ecuador's exports declined 3%, and with this agreement not only will we be able to recover that fall, but we'll be able to increase on before, and continue to be the main exporter of bananas to the European Union."

Ledesma expected the European Parliament would approve the deal either late this year or in the first months of 2015.

Regional Ecuadorian Banana Growers’ Corporation (AGROBAN) executive director Manuel Romero told www.freshfruitportal.com he was also positive about the news but his response was slightly more cautious.

"Nothing is definite yet, and at the moment I can’t say anything specific just yet about what's going to happen," he said.

"But the idea is what the procedures that we have here in Ecuador will be so much easier for exporters, and it implies that lower prices could be paid for the fruit."

www.freshfruitportal.com