Managing the Global Business Environment

Executive Summary There are three reasons why Ecuador should request a 21.5 panel. First, banana is a vital industriousness for Ecuador, so that it cannot leave the outcome in the hands of others. Second, Ecuador does not have a real ¡§free rider¡¨ luck in the banana dispute, since the US¡¦s interests deviate from Ecuador¡¦s best interests. Therefore Ecuador cannot solely rely on the US to fight with EU. Third, Ecuador has played an assertive role in the banana dispute in the past. To be consistent and to maintain credibility, Ecuador has to accommodate as long as EU import politics for bananas has not been compliant with WTO rulings. If Ecuador does request a 21.5 panel, EU exit fight back. At the similar time, the US and other Latin American banana exporting countries would join Ecuador aiming at take down barriers to trade. By filing, the compliance issue would be put onto WTO¡¦s agenda and EU would be pressured to seek for a solution within certain time frame. Filing the 21.5 panel would fasten the tension of the bilateral relationship between Ecuador and the EU. As the US government is pressurized by powerful multinationals, such as Chiquita, it would in all probability place retaliatory duties on European imports, which would lead to business organisation loss in European exporting industry.

At the same time, Caribbean economy could collapse if the EU¡¦s preferential sermon is whipped away without giving enough time for Caribbean to adjust. The wider importance of the banana trade dispute is that with the basis of EU trade straightaway shaped by the rulings of the WTO and the consolidation of trade liberalization and globalization. ¡§ surrender trade¡¨ has always been a delicate state of link negotiated between countries. No matter strong or weak, countries ingest to leverage and fight for their best interests. Ecuador should request a 21.5 panel. The reasons are as follows: Firstly, banana exporting is too crucial for Ecuador¡¦s economy to leave the solution in... If you want to get a full essay, order it on our website: Orderessay

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