Trade Gone Bananas: A Study of Political Control over Trade

Abstract: Trade patterns and trade partners occur in ever-changing constellations. Allies becomes rivals and vice versa. This thesis examines what factors creates trade and with the example of the Banana wars, tests if the European Union’s trade relation with its former colonies is driven by something other than neoclassical trade theory. Built on an inductive framework with a qualitative expectation of why the Banana wars occurred relevant sections are added to test the expectation. While much previous research focuses on the Banana wars and the consequences of it, little attention has been given the incitements for the European Unions continued banana trade with its former colonies. The findings presented in this thesis suggest that old neo-colonial structures still influences how governments and institutions set up trade agreements and after the agreement in the Banana wars finally was met, a gloomy picture for the future banana production in Europe’s former colonies are drawn. The trade partnership between the old colonies and its former colonizers cannot meet the greater competition from Latin American banana producers and the EU market will most likely be dominated by a few large US owned banana producers. Adding to the ambiguity is the expanding European Union of Eastern-European states joining without any colonizing background. Although the EU previously has been successful in governing its banana trade, the future for the banana producers of the former colonies looks uncertain according to this thesis.