Latin American and US banana producers want the EU import tariff lowered

The proposal is seen as a bid to persuade major exporters such as Ecuador and Panama to drop international trade suits against the EU.

The European Commission is facing at least three legal challenges to its banana regime from Latin America, as well as from the United States.

The current duty, in force since January 2006, is now EUR 176 ($240) a tonne - a rate that Latin American exporters say is far too high and discriminates against them.

Industry watchers say the offer could entail reducing the tariff to EUR 170 or $232 a tonne.

The long term prospect envisages a rate at EUR 123 after five years.

Caribbean dismay

However, former Eastern Caribbean Ambassador to Brussels Edwin Laurent believes Europe's proposal would seriously harm the region's already beleaguered banana industry.

"A reduction in the tariff on bananas would be disastrous for the Caribbean's banana exports," Ambassador Laurent told BBC Caribbean.

A reduction in the tariff on bananas would be disastrous for the Caribbean's banana exports   Ambassador Edwin Laurent

"They need this level of protection against the bananas from Latin America, which are so very much cheaper, so if you reduce the tariff the bananas from the English speaking Caribbean will not be able to compete," he said.

The idea of cutting tariffs to placate the Latin Americans and Washington, has also irked France and Spain - the EU's main internal suppliers of the fruit.

Bananas from African Caribbean Pacific countries enter the EU's lucrative markets free of duty, inside an annual quota of 775,000 tonnes, but anything shipped above that attracts the standard EUR 176 duty.