Mmmmm, Banana!
Bloomberg.com: Latin America — The Eurocops attack!! Of all the things in the world, let’s crack down on banana price-fixing? An eye-roller for sure. As if this would actually stop price fixing. Generally to continue the practice you start an independent organization that tracks prices and they are used as the source for the fix. This is wheel spinning.
June 3 (Bloomberg) — Chiquita Brands International Inc., the world’s biggest banana producer, and rival fruit suppliers including Dole Food Co. said European Union investigators raided their offices as part of a probe of suspected price fixing.
Some Chiquita employees shared pricing and volume information over many years with competitors and may have violated EU competition law, Cincinnati-based Chiquita said today in a statement. The company said it stopped the conduct and notified the European Commission.
Chiquita, Dole, Fresh Del Monte Produce Inc., Fyffes Plc and Ecuador’s Noboa supply more than three-quarters of the world banana market, valued at about $5 billion a year. The EU, the world’s biggest importer, is preparing to scrap its banana quota system and replace it with tariffs following complaints from Latin American producers, led by top grower Ecuador.
“These cases tend to be fairly protracted, but I expect this will be a little quicker,” said Brussels attorney Clive Stanbrook, an international partner for McDermott, Will & Emery who has represented clients in EU antitrust cases involving paper pulp, oil and gas, plastics and vitamins. “The commission knows a lot about bananas because of the trade dispute.”
It might sound stupid with them supposed to chase after “better” (worst) corporations until you check the history of how these multinational corporation took hold on latin american countries. I recommend to read a novel called “Prision Verde” (sorry but I don’t know if there’s an English version.)
Angel
This is where the phrase “Banana Republic” came from. It sounds as though you are already familiar with it though.
For decades the banana companies ruled much of Central America as feudal lands, with the implicit endorsement of the US State Department. (It kept the commies under control) Almost all of the bananas and much other produce were controlled by only a couple of companies and enjoyed tariff protection.
Europe imported most of their bananas from the Caribbean Islands. There the growers were mostly farmer owned and often cooperative. Of course, the colonial influence was also prevalent and garnered favored tariff protection for them.
With the World Trade Agreement, Europe had to stop their favored status for the more independent Caribbean farmers and allow the more monopolists American companies to import to Europe. When the American companies used their own distributing system, thereby shutting out European distributors, and dictating prices a backlash developed. Now the system the American companies demanded is coming back to haunt them.
Thanks to John & commenters for the EU material. None of the political blogs can quite figure it out and I understand things much better thanks to DU. Now, should I invest my retirement money in Scotland or not?