Fears were mounting last night that the threatened ''banana wars'' looming between the EU and the US could cost 2400 British jobs.
Scottish industrialists warned the dispute could have a ''catastrophic'' impact and urged Trade Minister Brian Wilson to make ''the strongest possible representations'' to the EU over a threat by the US to impose punitive tariffs on a range of imports.
Professor Alan Main, Moderator of the General Assembly of the Church of Scotland, said in a letter to EU Commissioner Sir Leon Brittan that the threat to the cashmere industry in the Borders was the latest ''disaster'' facing a region which had already lost 2000 jobs in one year.
''I am advised the cashmere industry is worth #20m to the fragile and vulnerable Borders economy, and the present situation is causing great anxiety among many families as further jobs may be put at risk,'' said the moderator.
The Scottish Council Development and Industry urged Brian Wilson to make ''the strongest possible representations'' to the European Commission.
The trade row centres on a wrangle between Washington and Brussels over the preferential import treatment which the EU allegedly gives to imports of bananas from the Caribbean.
The Department of Trade and Industry estimates that the tariff war could hit around 2400 jobs in Britain, with the cashmere sweater industry the worst affected.
Pear-shaped world Page 13
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