St Lucia

"The WTO ruling is a capitulation to the machinations of those who are blinkered by free trade and sheer greed. We had looked to the WTO to respect the special social and economic circumstances of small, vulnerable economies and have been cruelly disappointed.

We now look to the European Union to find a formula which will allow us continuing access to the European banana market in a manner which will allow our farmers to continue earning a decent and dignified living. We urge the EU to be steadfast in protecting the spirit and substance of the Lomé Convention, to remain committed to ensuring equity in International economic relations and to remain faithful to its ACP friends."

Saint Lucia is the most populated member of the Organisation of the East Caribbean States (OECS). Independent since February 1979, Saint Lucia has an economic performance that has remained strong since 1982.

Saint Lucia has generally benefited from good economic management. The economy expanded over the five years prior to 1992, driven by exports to the protected EU markets which contributed 16 per cent to GDP and fuelled growth in other areas. More recent problems with the banana sector have increased the importance of non-traditional agricultural commodities, such as breadfruit, pepper, and mangoes.

Banana export earnings were badly affected by the fall in banana prices from 1995, following the increase in the tariff quota to 2.2 million tonnes (EU12). This caused major financial difficulties for the Banana Growers Association, which converted substantial accumulated reserves into an overdraft in an attempt to sustain prices to growers.

Banana production and export is the most important activity in the agricultural sector and makes a crucial contribution to income and employment in a country where 25 per cent of the population lives below the poverty line. Major efforts are being made to restructure the industry to make it as competitive as possible despite its inherent disadvantages.