THE spanish olives are about to be the key to the start of a tariff war between the European Union (EU) and USA (USA). The Twenty-Seven asked the World Trade Organization (WTO) its permission to begin carrying out trade retaliation worth $35 million per year against the American nation. The reason for this demand is nothing other than the tariffs that the Americans impose on Hispanic olives.
Thus, in a recent communication addressed to the WTO, the European Union recalled that the reasonable period granted to the United States to comply with a decision regarding customs duties on Spanish black olives expired in January 2023, without adequate measures having been taken.
However, although the US Department of Commerce reduced tariffs from 35% to 31%, the European Commission considers that this measure is insufficient and that it continues to harm the Spanish olive.
In response, the EU decided to move towards suspension of commercial benefits currently benefiting the United States, for an estimated value of $35 million, adjustable according to the inflation.
Spanish olives and prices
In addition to the above, the Europeans have informed the WTO that they will soon transmit a list of American products to which specific rates will apply.
This case is of strategic importance for the EU, as it could set a precedent that would affect agricultural subsidy policy under the Common agricultural policy (CAP). It is for this reason that Brussels has maintained a firm position since the start of the conflict.
In a broader context, the WTO and its member states are attentive to the way in which this organization will be approached by the next government of Donald Trumpwho, during his first term, repeatedly criticized the WTO, questioning its alignment with US interests.
Since the imposition of the tariff in the American country, Spain has lost two thirds of the market of this product in the United States and gave Spanish farmers some losses of 260 million euros.
A situation which also forces Spanish producers to sell cheaper and have a lower profit margin, in addition to causing a loss of competitiveness of the sector and requires searching for new markets.
The curious thing about this tariff on table olives is that it was only imposed on Spain, which was the main exporter of this product to the United States, and one of its most important markets. More specifically, other countries like Egypt, Morocco and Türkiye They sell table olives in the United States and do not benefit from these customs duties.
The fact that these customs duties on black olives already exist and that Trump has once again won the US elections raises fears among farmers, who believe that in the future this measure could be extended to more Spanish products.
The objective of this tariff is to protect and increase the winnings of the American farmersmore precisely, from the California region, where this type of olive is mainly grown.
