EU: Yes, We'll Have Some Bananas

ByJohn S. McClenahen Ending nearly a decade-long dispute with the U.S., the European Union (EU) will import more American-shipped bananas. In return, the U.S., beginning July 1, will lift punitive quotas on a variety of manufactured goods from the 15-member EU. However, the banana accord leaves two other contentious bilateral issues unresolved. They are so-called Foreign Sales Corps., a tax-incentive program designed to boost exports of U.S. manufactured goods, and hormone-treated beef. The EU has banned imports of such beef and has taken the tax issue to the World Trade Organization, alleging the arrangement constitutes an illegal trade practice.