international trade case study - bananas

• Where are many bananas grown?

  Large monoculture plantations in Latin America
• What type of regions predominantly grow bananas?

  Hot, rainy lowlands of tropical regions
• Where is banana production not controlled by TNCs primarily found?

  Smaller scale family farms in the Caribbean
• What percentage of banana trade was dominated by four large TNCs in the past?

  80%
• Name one of the four large TNCs that dominated banana trade.

  Chiquita
• Which country is the main exporter of bananas?

  Ecuador
• How many tonnes of bananas does Ecuador export per year?

  5,778,171 tonnes
• Which country is the main importer of bananas?

  USA
• How many tonnes of bananas does the USA import?

  3,831,239 tonnes
• What has changed in the organization of banana trade in recent years?

  • TNCs no longer own plantations directly
  • They have guaranteed supply contracts with producers
  • Retailers in importing countries dominate the supply chain
• What percentage of the market share did US TNCs hold in 2013?


  36%
• What environmental impact does the banana industry have?

  Largest agrichemical input into the environment
• What are some negative impacts of banana plantations?

  Deforestation, soil fertility loss, biodiversity loss
• What percentage of the price paid by consumers reaches the banana producers?

  About 10%
• What is one of the biggest profit makers in supermarkets?

  Bananas
• How does the global trade in bananas reflect injustice in free trade arrangements?

  • Lower prices paid to suppliers by supermarkets
  • Larger companies relocate plantations to West Africa
  • Known as 'race to the bottom' in standards
• What working conditions do banana plantation workers face?

  Long shifts in unbearable heat
• What is the impact of TNCs on political decisions regarding banana trade?

  TNCs have large control and influence
• What are the barriers to trade and conflicts regarding banana trade?

  • Longest trade dispute in history
  • Geneva Banana Agreement reached in 2009
  • EU's Lome Convention protected smaller farms
• When did the banana trade dispute start?

  1975
• What was the outcome of the WTO ruling against the EU in 1997?

  EU ordered to cease discrimination
• What was the compromise reached in 2009 regarding banana tariffs?

  EU agreed to gradually reduce tariffs
• Which Caribbean countries are competing successfully in banana trade?

  Dominican Republic, Belize, Windward Isles
• What type of bananas are the Caribbean countries focusing on to meet EU market needs?

  Organic and fairtrade bananas
• What social issues are associated with banana trade?

  • Farmers receive a small percentage of the price
  • Many fail to meet basic needs
  • Workers endure long hours in hot conditions
• What environmental issues are associated with banana trade?

  • High chemical usage in production
  • Deforestation and biodiversity loss
  • Soil fertility degradation