U.S. Threatens Tariffs on European Union Olive Oil, Other Products

The U.S. has threatened to impose US$11 billion worth of tariffs on European Union’s (EU) various products that included olive oil, butter and essential oils in a long-running dispute counting 14 years over the EU’s subsidy of European aerospace corporation Airbus. The World Trade Organization (WTO) has found repeatedly that EU subsidies to Airbus have caused adverse effects to the U.S., the Office of the U.S. Trade Representative (USTR) said in a statement last month. 

The USTR’s 14-page list of EU goods that could attract tariffs, include several symbolic targets such as “French cheese”, wine, champagne, olive oil and seafood such as oysters, according to the Guardian. According to Reuters, EU officials had also started to prepare retaliatory measures in relation to U.S. subsidies to American aerospace company Boeing.

Olive Oil Times wrote recently last month that EU olive oil producers could be among the hardest hit if the US tariffs were imposed, which could range from US$0.034-0.176/kg on olive oil.  The EU exported 194,570 tons of olive oil with an estimated value of US$1bn to the U.S. during the 2018/19 harvest season. According to Eurostat, 35% of EU olive oil exports with an estimated value of US$339M went to the U.S. in the first fiscal quarter of 2019. Spain exported 35,323 tons, Italy 30,898 tons, while Portugal and Greece exported 1,410 tons and 3,506 tons, respectively.