Tunisia's Hopes of Doubling Tax-Free Olive Oil Exports to Europe Dashed
The European Commission has rejected Tunisia's request to increase its tax-free olive oil exports to Europe. Currently, 56,700 tonnes of Tunisian olive oil enter Europe annually without incurring customs duties. Tunisia had hoped to double this quota to 100,000 tonnes, but the Commission has refused to grant any new trade concessions for this product.
The Current System
The system in place allows for a certain quantity of olive oil to be imported into Europe without taxes. Any amount above this threshold is subject to full European customs duties. This mechanism is part of the trade agreements between Tunisia and the European Union, which have been in place for several years.
Why the Quota Exists
The quota exists because Europe is a significant producer of olive oil, with countries like Spain, Italy, and Greece being among the world's largest producers. The market is sensitive, and imports are regulated to prevent destabilization. In practice, Tunisian olive oil is used to fill gaps in the European market. When European harvests are poor, imports increase, and when they are good, the need for imports decreases. The quota serves as a buffer to regulate the market.
The Commission's Decision
The Commissioner for Agriculture has made it clear that there will be no new trade concessions for olive oil. The current quota of 56,700 tonnes will remain in place, and any amount above this will be subject to European customs duties. This decision is a setback for Tunisia, which had hoped to increase its exports to Europe.
