Chiquita Files Suit Against EU in Trade Dispute

Chiquita Brands International Inc., blaming a trade dispute with the European Union for almost wiping out its market value, filed a $525-million lawsuit against the EU’s ruling body for blocking imports of bananas.

Chiquita, the world’s largest banana producer, said it suffered damages of $200 million annually through lost EU market share because of the European Commission’s failure to comply with World Trade Organization rulings that found the 15-nation bloc’s banana-importing system illegal.

The lawsuit, filed at the European Court of Justice in Luxembourg, is the latest round in a fight dating back to 1993 that has soured transatlantic trade relations and led to the imposition of $191 million in U.S. sanctions.

Chiquita President Steven Warshaw blamed the EU for “eight years of ongoing trade battles and a lack of remediation.” Cincinnati-based Chiquita “continued to finance our business during that period and have incurred a very, very significant debt load as a result of having sustained that damage,” he said.

Chiquita’s market capitalization has dropped from almost $1 billion in October 1997 to less than $100 million today. Its shares closed up 9 cents at $1.38 on the New York Stock Exchange.

European trade commissioner Pascal Lamy declined to comment, saying the commission doesn’t talk about cases before the European Court of Justice.