Bananas have remained a consistent item in British supermarkets, with their prices remaining unchanged for the past three decades. However, the UK government is now under scrutiny for allegedly pursuing a post-Brexit policy that might further reduce banana prices. This reduction, while beneficial for consumers, could jeopardize the livelihoods of thousands of workers on small plantations in impoverished African countries.
Currently, the British banana market is largely influenced by the “dollar banana” producers from Latin America. These producers have enjoyed reduced import taxes due to EU-negotiated free trade deals. While the EU committed in 2019 to not further reduce tariffs for these large producers to protect smaller African competitors, the UK’s departure from the EU has freed it from this commitment.
Afruibana, the Pan-African association of banana producers and exporters, has expressed concerns that the UK might abandon the EU’s promise. Recent tariff concessions to Mexico and Peru, as well as a trade deal with Australia, have heightened these concerns. The UK’s ongoing tariff review with Andean countries, including Colombia, Ecuador, and Peru, could potentially harm businesses in Ghana, Cameroon, and Ivory Coast.
Despite these concerns, the UK’s foreign secretary, James Cleverly, has not committed to upholding the EU’s pledge. Joseph Owona Kono, the president of Afruibana, emphasized the potential risks to the African banana sector and the livelihoods it supports.
The UK’s competitive supermarket sector and previous free trade agreements with the EU have contributed to the low banana prices for British consumers. While Latin American suppliers dominate the market, African nations hold a significant portion, providing numerous jobs and supporting many in rural areas.
Afruibana argues that reducing costs for Latin American producers might not necessarily benefit British consumers, as the already low consumer costs mean savings could be absorbed elsewhere in the supply chain.
Gareth Thomas, a shadow trade minister, criticized the UK’s approach, suggesting that the government might not have considered the long-term implications of their trade deals.
The article also provides a comparison of supermarket staple prices over the years, highlighting that bananas, cucumbers, oranges, and carrots have remained relatively affordable for consumers.