EU Removes Tariffs on Chilean Olive Oil Imports

An interim free trade agreement between Chile and the European Union has come into force, removing tariffs on the first 11,000 metric tons of Chilean olive oil exports to the 27-member bloc.

The interim agreement is expected to remain in place until the 27 E.U. member states approve a more comprehensive Advanced Framework Agreement.

“The existence of a framework treaty is very beneficial for Chile,” José Pablo Illanes, the general manager of award-winning producer and exporter Las Doscientos, told Olive Oil Times.

“This will allow Chilean companies to promote and sell their products more competitively to different countries in the European community,” he added. “Europe can become an interesting market for Chile.”

According to data from Chile’s national customs service, the country exported 17,502 metric tons of olive oil in 2023, valued at $117 (€108) million.

The United States (5,561 tons) and Brazil (5,437 tons) were the two leading destinations, followed by Spain (3,354 tons), Italy (1,308 tons) and Portugal (1,131 tons). Separate data from Eurostat show the rest of the E.U. imported about six tons of olive oil from Chile in 2023.

While most Chilean olive oil exports to Spain, Italy and Portugal are sold in bulk to large bottlers, who blend the oil and resell it under their brands, ChileOliva general manager Gabriela Moglia said the agreement opens new opportunities for producers to sell individually packaged olive oil elsewhere in the bloc.

While the agreement removes 99.9 percent of tariffs on E.U. exports to Chile and safeguards 216 European geographical indications, it offers little additional benefit to European olive oil exporters.

Tariffs on E.U. olive oil exports were gradually eliminated under a 2003 trade agreement between Chile and the E.U.

Eurostat data show the E.U. exported 417 tons of olive oil valued at €2.9 million to Chile in 2023, virtually all of which came from Spain (315 tons) and Italy (101 tons).

Despite the news, Illanes said Las Doscientos, which exports individually packaged olive oil rather than bulk, does not plan to significantly change its market strategy.

“The Brazilian market continues to be our priority, and it will not change in the short term,” he said. “But we believe there may be alternative niches [in Europe] that will pay for a better, high-quality extra virgin olive oil and Chile can be a supplier.”

Fernando Carrasco Spano, the chief executive of Olivos Ruta del Sol, said the award-winning company will use the free trade deal to test the higher end of the European olive oil market.

“The removal of tariffs with the European Economic Community is great news for our company, because it allows us to enter the Italian, Portuguese and Spanish super high-end markets, initially with bulk and then with packaged product under our brand,” he said.

“It will allow the extensive number of European high-quality consumers to have a novel alternative of fresh olive oils each year in May and June before the European harvest,” Carrasco Spano added.

Tags: EU, Chile, olive oil