We play good neighbors at home but we're warring abroad as Belize and Central American nations are at bitter odds over the bananas Belize sells to Europe at preferential prices. A late night negotiation session at the Hong Kong Convention Center ended with a showdown as the trade representative from Honduras condemned Europe's preferential tariff for Belize and other African, Caribbean and Pacific Countries, now set at 176 euros, or US$210 per ton. From the Honduras perspective, this will make them non competitive in the European market and is unacceptable and, by WTO rules, impermissible.
To the surprise of none, other Central American nations, namely Salvador, Costa Rica and Panama heartily supported Honduras's stand. But not so predictably, they were also supported by the United States and India. Still the European Union held its position, as it must, if it is to comply with treaty obligations to ACP countries. But the Latin American nations and their big supporters aren't letting up either, putting deliberations at a deadlock. Honduras has indicated that if Europe does not comply by the end of the meeting on Sunday, it will consider rejecting any overall trade agreement. That kind of brinkmanship is of course only one hotspot in meetings that have been beset by often irreconcilable differences over a broad range of issues.
