You are a member of a World Trade Organization task force that is reviewing the recent banana conflict between the United States and the European Union. The European Union and the United States recently ended a nine-year battle over trade in bananas. The European Union was giving preferential treatment to banana exporters from Africa, the Caribbean, and the Pacific island nations. But the United States challenged what it saw as unfair trading practices, and the World Trade Organization agreed. Large global fruit companies such as Dole, Chiquita, and Del Monte—which alone account for nearly two-thirds of the fruit traded worldwide—supported the U.S. action. The European Union argued it was trying to support struggling economies, for which bananas make up a large portion of their income.

5-5 Should international trade be left to private enterprise only, or should governments openly manage it to benefit poorer nations?

5-6 Would you have argued on behalf of the United States or the European Union? Explain?

5-7 What are the pros and cons of each side’s arguments?