BBC Caribbean reported that lawmakers in Brussels voted 501 in favour, with 114 against, to give the green light to a December 2009 deal that was brokered by the World Trade Organisation (WTO).
The move is seen as one intended to end the decade long banana war between the European Union (EU) and the Americas.
Caribbean producers, who enjoy preferential market access in Europe, have been speaking out against a deal they insist will further damage their banana industry.
The new arrangement now means that customs duties on Latin American bananas entering the EU will gradually fall from US$240 a tonne to US$114 by 2017.
The EU has offered a US$272 million aid package to Caribbean, African and Pacific banana growers as a cushion for their projected losses.