Olive oil in the USA? Trump threatens parmesan and olive oil sanctuaries, announcing tariffs of up to 25%.
In particular, Parmesan is not just cheese, it is sacred in Italy, its production is like a religion. It has been produced in the same way for centuries.
But Parmesan is not only national pride, it is also an export success and what has caused great discomfort in Italy.
Tariffs on olive oil because of the planes
Due to illegal EU subsidies in favor of Airbus, the United States wants to impose a 25% tariff on Parmigiano Reggiano and Grana Padano cheeses. Americans will pay $45 per kilo instead of the current $40.
The USA is the second most important export market in Italy for the sale of Parmesan, with around 10,000 tons per year, after France (11,000 tons / year).
According to Nicola Bertinelli, head of consortium, the concern is great since it is one of the strongest sectors of our economy, which has nothing to do with Airbus, and now has to pay a really absurd bill.
In addition, with revenues of about 2,000 million euros, Italy is the second largest producer of olive oil in the world after Spain.
Prime Minister Giuseppe Conte also expressed his concern, himself, and cheese delegations have traveled to the USA in recent weeks to avoid the disaster.
Spain also affected
Here our precious Olive Oil is affected, mainly in Andalusia. Indeed, of the more than 400 million euros sold to the USA in 2018, 80% were entered in the south of the country.
Olive oil and olives are traditionally of great economic, but also social importance. Therefore, the Andalusian protest was important after the announcement of US tariffs. In particular, the regional Minister of Labor, Rocío Blanco, warned that the sharp decline in exports to the United States will affect many companies and raise the unemployment rate to more than 21 percent.
On the other hand, Rafael Pico, Managing Director of the Association of Asoliva Exporters, is even more drastic, and thinks that a fine of 25 percent will eliminate many from the market. In the same way, Mariano Íñigo, a professor at the EAE Business School, believes that the end of many companies with very low profit margins is forecast.
Olive oil in the USA is definitely a strategic market for our companies, which we cannot afford to lose.