Banana deal inches closer

European trade negotiators say they are close to an agreement that could end the 16 years banana dispute with the World Trade Organisation.



The dispute, which began in 1993, centres on the EU\'s preferential trade regimes for former colonies in Africa, the Caribbean and the Pacific.



The European Trade Commissioner Catherine Ashton said a deal on lowering EU banana tariffs for Latin American suppliers could be concluded by the end of the week.



The proposed settlement calls for a reduction of EU tariffs from the current $262 per tonne to 170.



Caribbean producers say such a move would put them at a severe disadvantage.



The settlement is likely to reduce prices for consumers by boosting competition and strengthening the hand of low cost Latin American producers.