Brussels, Dec 6 - Europe's trade chief warned Ecuador on Wednesday that its fight against the European Union's tariff system for banana imports could endanger a planned trade deal between the EU and the Andean region.
"In my view, it is not possible to litigate and negotiate at the same time," Peter Mandelson told reporters. "If that threat of litigation is not resolved, than it will certainly make negotiations very much more difficult if not impossible."
The European Commission formally asked EU governments on Wednesday for mandates to negotiate trade agreements with a range of countries, among them members of the Andean Community which includes Ecuador as well as Bolivia, Peru and Colombia.
But Ecuador, the world's top banana exporter, filed a complaint last month at the World Trade Organisation (WTO) against the EU's single import duty for bananas, saying it was too high and reduced the country's access to lucrative EU markets.
Colombia joined Ecuador with a similar complaint last week.
Progress towards launching the EU-Andean trade talks has been slowed in the past by internal differences within the South American group.
Earlier this year, Bolivia's newly elected left-wing government expressed doubts about joining its Andean partners in the negotiations. It later decided it would take part.
A leftist candidate, Rafael Correa, won presidential elections in Ecuador last month with promises of sweeping economic changes.
Mandelson said he did not think the political upheaval in the region would hinder the trade talks.
"I have no reason to believe that the new governments among the Andean Community are any less committed to doing a free trade agreement with the European Union," he said.