Union of Banana Exporting Countries
The Union of Banana Exporting Countries (Spanish: Unión de Países Exportadores de Banano or UPEB) was a 1974 cartel of Central and South American banana exporting countries, inspired by OPEC. Its aim was to achieve better remuneration from the North American banana trade monopoly, which consisted of three US companies. UPEB's proposal of an export tax was undermined by the U.S. monopoly bribing Honduran and Italian officials. The UEPB cartel collapsed when bribes became public. What is referred to as the Bananagate scandal paved the way for the U.S. Congress to create the 1977 Foreign Corrupt Practices Act.
History
In 1974 Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Nicaragua, and Panama joined together in an attempt to form a banana exporting country cartel focusing on exports to the North American market.The Philippines was the only major exporter of bananas to the United States which did not join. The market for banana exports to Europe at this time was quite separate, with mainly former European French and British colonies in the Caribbean supplying European countries.
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