The E.U. and Latin American countries have initialed a deal that marks the end to the decades-long trade dispute over bananas. Under the agreement, the E.U. will cut tariffs on banana imports from 176 euro per ton to 114 euro per ton by 2017. In addition, the E.U. will provide a one-time cash payment of 200 million euro to assist African, Caribbean and Pacific (ACP) countries (many of which are former European colonies) as they adjust to stiffer competition from other banana exporting countries. In exchange, Latin American countries will drop their legal challenges against the E.U. and will not seek further cuts to banana duties during the Doha round of trade negotiations. In a parallel development, the U.S. also agreed to drop its related banana dispute with the E.U. The E.U.-Latin American agreement, which marks the end of the world’s longest-running trade dispute, is seen as an important boost towards progress in the Doha trade negotiations.