European and Latin American trade officials are close to a deal that would end the long-running ‘banana wars’ trade dispute and could lead to even lower prices for consumers.

The banana wars are the longest running dispute in the history of the World Trade Organisation, dating back to 1993.

Under the draft settlement, the European Union would reduce its banana tariffs from the current €176 per tonne to €114, eroding much of the ACP countries’ advantage.

The proposed settlement could also boost the struggling Doha round of world trade negotiations, according to the Financial Times, by ironing out tariffs for dozens of tropical products. Tariffs on products such as sugar and pineapples would also be reduced.

In return, the ACP nations would receive €190m in development aid from the EU to help them restructure. The Latin countries would agree to drop all pending litigation against the EU related to the banana wars.