Col: European Union Commission goes bannanas for cocaine

BRUSSELS, June 3 (Reuters) - Colombian drug production could rise at the expense of banana-growing if the European Union hikes its import tariffs for the fruit in a major policy change expected before 2006, the country's EU envoy said on Thursday.

The European Commission, which negotiates foreign trade for the 25-nation bloc, hopes to start talks soon with trade partners on the way the EU imports bananas. It plans a single tariff by 2006, replacing the current quota and duty system.

At the moment, the basic tariff is 75 euros ($91.70) a tonne. Latin American nations, growing bananas from Mexico down through Central America and into Colombia and the world's top exporter Ecuador, fear it might reach as high as 300 euros.

"We hope to have a common position among all Latin American countries. We'll go for less than 75 euros," said Nicolas Echavarria, Colombia's ambassador to the EU, based in Brussels.

"But for Colombia, there is another limit. There is an acceptance from the EU that there is co-responsibility for the drug problem. If we cannot maintain production of bananas and other crops, our production of drugs is going to increase."

Colombia is the world's top producer of cocaine, processed from coca, and also a major supplier of heroin and marijuana.

Latin American banana growers, competing with Caribbean island and African states for coveted EU access, say any tariff rise over 75 euros will cost them market share.

Sounds a bit far fetched...But European protectionism is nothing to sniff at.