EU abolishes tariffs on imports of Chilean olive oil
As of March 11, 2023, a temporary free trade agreement between Chile and the European Union has come into effect, abolishing tariffs on the first 11,000 tons of Chilean olive oil exported to the EU. This agreement will remain in effect until the 27 EU member states approve a comprehensive trade memorandum.
This is reported by AgroReview
According to the Chilean National Customs Service, in 2023, the country exported 17,500 tons of olive oil worth a total of 117 million USD. The leading exporting countries are the United States with 5,560 tons, followed by Brazil with 5,440 tons. They are followed by Spain (3,350 tons), Italy (1,300 tons), and Portugal (1,130 tons). Eurostat data indicates that the rest of the EU countries imported only about six tons.
Support for European Geographical Indications
In addition to abolishing tariffs, the agreement also provides for the elimination of 99.9% of tariffs on exports from the EU to Chile and the protection of 216 European geographical indications. However, this does not provide European olive oil exporters with additional advantages in the Chilean market.
Prospects for Olive Oil Production in Chile
According to Eurostat data, in 2023, the EU exported 417 tons of olive oil to Chile worth 2.9 million euros, most of which came from Spain (315 tons) and Italy (101 tons). Industry analysts indicate that, given the production level, the limit of 11,000 tons is sufficiently high. However, olive oil production in Chile is expected to reach 15,000 tons in 2024, due to extreme heat in the north of the country and heavy rains in the center. Producers are hopeful for improved figures in the new season.
In the report by the Chilean Agricultural Research and Policy Office for 2024, the EU is identified as a strategic market for expanding production and exports.
According to the latest data from the International Olive Council (IOC), global olive oil consumption is expected to increase by 10% in the 2024/25 marketing year compared to the previous season, exceeding 3 million tons.
At the 23rd International BLACK SEA GRAIN.KYIV Conference, scheduled for April 24 in Kyiv, discussions will focus on the further development of the grain and oil market in Ukraine and the Black Sea region. All interested parties are invited to participate in strategic discussions and networking with industry leaders!