based WTO found that the bloc's complex quota/tariff system discriminated against Latin American growers. Seeking to comply with the ruling, the EU proposed its new system, scrapping the quota and suggesting the 230 euro per tonne tariff to apply from 2006, which has pleased nobody. The EU has domestic problems as it is also a banana grower with production in the Spanish Canary Islands and French islands of Martinique and Guadeloupe. The next stage in the WTO dispute will be the findings of the arbitration body, expected in August, said Castillo. If the panel finds the EU-proposed tariff would deny market access to Latin America, the EU would have to suggest a lower figure which would then be subject to further WTO arbitration. If this process fails to lead to a deal, all EU banana trade arrangements would lapse at the end of the year including the EU's duty free access to ACP countries, he added. Costa Rica's Ambassador to the WTO Ronald Saborio said the needs of developing countries were at the core of trade liberalisation talks aimed at phasing out farm subsides given by wealthy nations. "We are efficient producers of bananas," he told Reuters. "The only thing we expect is to have fair market access for our products."