Chiquita, the US’s leading banana distributor, was fined $38 million for the funding of the United Self-Defence Forces of Colombia (AUC), a designated terrorist group operating in Colombia.
The firm had to pay out compensation to the families of 8 victims of the AUC, who Chiquita had funded to the tune of $1.7 million over the course of 7 years.
Victory for Human Rights Advocates
This is a major victory for international human rights advocates as it’s the first time a US corporation has been held legally accountable for human rights violations abroad.
A spokesperson for Earthrights, a law firm representing the victims’ families said, to The Guardian newspaper, that “this verdict sends a powerful message to corporations everywhere: profiting from human rights abuses will not go unpunished.”
Who are Chiquita?
Chiquita is an American food producer and distributor, most closely associated with bananas, that operates in 70 different countries.
They make around $1 billion in sales each year and their Fresh Express brand is dominant in the US, with 40% market share. They were previously known as United Fruit Company and were re-branded as Chiquita Brands International in 1984.
United Fruit Company’s Controversial History
The United Fruit Company had a vast presence in Central America, at one point being the largest employer in the region.
But they are often held up as a prime example of the negative influence that multinationals can have on less-devoloped nations. Due largely to the actions of United Fruit, Guatemala and Honduras were first termed ‘Banana Republics’ in reference to their entire state being treated as a commercial enterprise.
Who are the AUC?
The Autodefensas Unidas de Colombia (AUC) militia was formed in the 1980s by Colombian crime lords looking to protect their assets against left-wing guerilla groups.
They were designated as a terrorist organisation by the USA in 2001 for violence and human rights abuses.
Why Did Chiquita Fund the AUC?
Chiquita claim that they funded the AUC legitimately. They stated that “there is no legal basis for these claims”.
In court, evidence showed that executives considered payments to the AUC as the “cost of doing business in Colombia”. They pled guilty in 2007 to secretly paying the “specially designated global terrorist” group.
Payments Continued Even After the Designation
Although Chiquita claimed to be acting legally, evidence has shown that they continued payments even after the US designation of the AUC as a terrorist group.
The also allowed the militia to use their ports to import weapons and perform smuggling operations, according to human rights advocates.
17 Year Wait for Justice
Although Chiquita pled guilty in 2007 to funding the AUC, the victims’ families have only just received compensation.
However, some cases are not completely resolved. If negotations fall through, another trial may be held on 14 July.
Chiquita Will Appeal the Verdict
Despite pleading guilty in 2007 to secretly paying $1.7 million to AUC over 7 years, Chiquita will continue their appeal.
A Chiquita spokesperson stated that “while we are disappointed by the decision, we remain confident that our legal position will ultimately prevail.”
Implications for Further Human Rights Trials
Although the fine is dwarfed by their annual sales number, this case may have wider-reaching implications in how human rights law is used as a tool for litigation.
It’s the first time a large, American corporation has been deemed legally accountable for their actions abroad. This sets a new precedent for the actions of large multinationals, who may have to consider far more carefully from now on the human rights implications of their actions globally.
