Spain raffles the Olive Oil tax
The 25% tariff imposed by the US has caused concern to the Spanish mills since the US is such an important market, it could harm their exports. Spain has been able to redo itself to this tariff and avoid the tax. The procedure that Spain has used has been copied from the Italian system since they bought Spanish oil in bulk, bottled it and sold it to the US, with Italian brands that are leading the market.
In the case of Spanish oil companies, the procedure has been to increase their purchases from Portugal and Tunisia in order to package it and send it to the US and thus be able to avoid the tariff. That is why the statistics are not deceiving and that, from the entry into force of the tariff until the end of summer, Spain exported more than 41% in volume of bottled oil to the United States, although if we talk about monetary value, it only increased by 12% because of the price drop. The numbers reveal that exports have reached record highs with almost 1.2 million tons sold. In the 20/21 campaign, the production of this product is estimated at 1.4 million tons in Spain, so the high production and the negotiations between Brussels and the US can give a break to this sector that is being so punished.