(GENEVA) - The World Trade Organisation on Monday confirmed its ruling against the European Union's banana import barriers, upholding a complaint by Ecuador.

"The European Communities' current banana import regime, in particular its preferential tariff quota reserved for ACP (Africa-Caribbean-Pacific) countries, is inconsistent" with global trade rules, the WTO said in a final judgement on the case that has dragged on for years.

Monday's ruling confirms a preliminary report issued in November.

The setback for the European Union is the second time in seven years that the WTO has found against its banana imports regime after a ruling against a previous system in 2001.

Ecuador lodged a complaint in November 2006 challenging new rules implemented January 1, 2006, that imposed custom duties of 176 euros (260 dollars) per tonne on bananas from countries outside the so-called ACP group.

Bananas from Latin America account for four fifths of EU imports, with the remainder coming from African, Caribbean and Pacific nations.

ACP bananas enter the European Union duty free under a quota of 750,000 tonnes a year, with the system devised to favour the ACP countries, many of which are former European colonies.

Under previous practices, bananas from Latin America and non-ACP countries were subject to a tariff of 75 euros a tonne under a certain quota level and 680 euros a tonne above that level.

This system was redrawn after the WTO in 2001 upheld a complaint by Ecuador, Guatemala, Honduras, Mexico and the United States.

In February, the WTO also ruled against the EU in a similar case brought by the United States.

Although the United States does not export bananas to the EU itself, three of the largest producers with plantations in Latin America are US-based multinationals: Chiquita, Del Monte and Dole.

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