Trump's Tariffs On Spanish Olives Illegal, WTO Rules

A US decision to slap steep import duties on Spanish olives over claims they benefited from subsidies constituted a violation of international trade rules, the World Trade Organization (WTO) ruled Friday, FreshFruitPortal.com reported.

Photo Insert: Olives being sold at a local market in Spain

Former US President Donald Trump slapped extra tariffs on Spain’s iconic agricultural export in 2018, considering their olives were subsidized and being dumped on the US market at prices below their real value. The combined rates of the anti-subsidy and anti-dumping duties go as high as 44 percent.

The European Commission (EC), which handles trade policy for the 27 EU states, said the move was unacceptable and turned to the WTO, where a panel of experts was appointed to examine the case. In Friday’s ruling, the WTO panel agreed with the EU’s argument that the anti-subsidy duties were illegal.

EC said Spain’s exports of ripe olives to the US, which previously raked in €67 million ($75.6 million) annually, have shrunk by nearly 60 percent since the duties were imposed.

The office of the US Trade Representative (USTR) in Washington did not immediately comment on the ruling. According to WTO rules, the parties have 60 days to file for an appeal.

However, WTO did not support EC’s stance that the US anti-dumping duties violated international trade rules and only “recommended that the US bring its measures into conformity with its obligations.”

EU trade commissioner Valdis Dombrovskis hailed the ruling, pointing out that the US duties severely hit Spanish olive producers. “We now expect the US to take the appropriate steps to implement the WTO ruling, so that exports of ripe olives from Spain to the US can resume under normal conditions,” he said.

The EC charges that Spain’s exports of ripe olives to the United States, which previously raked in €67 million ($75.6 million) annually, have shrunk by nearly 60 percent since the duties were imposed.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic