Europe
After years of painful negotiations, Brexit has finally become a reality, with a trade deal agreed between the European Union and the United Kingdom at the eleventh hour.
The fact that a deal was reached and ratified is a relief for E.U. exporters to the U.K. They will be exempt from tariffs, which would have been applied if the U.K. had defaulted to the World Trade Organization (WTO) rules.
The news is good in the sense that there are no fixed tariffs for the United Kingdom importing oils from the European Union.- Rafael Pico Lapuente, executive director, Asoliva
Rafael Pico Lapuente, the executive director of the Spanish Association of Olive Oil Exporting, Industry and Commerce (Asoliva) told Olive Oil Times, “the news is good in the sense that there are no fixed tariffs for the United Kingdom importing oils from the European Union.”
While there are no changes to tariffs this does not mean it is completely business as usual as some changes to the process of trading goods will occur, as was expected.
See Also:Trade NewsAccording to the European Commission, “As of 1 January 2021, customs rules required under E.U. law will apply to all goods entering the customs territory of the E.U. from the United Kingdom, or leaving that customs territory to the United Kingdom.”
Even though there is a trade deal, goods traded between the E.U. and the U.K. will be subject to regulatory compliance checks. This will mean additional paperwork, such as customs declarations, and this adds an extra layer of complexity for importers and exporters.
“The United Kingdom became a third country like any other, in which it will be necessary to do all the documentation and export requirements from Spain and the European Union to the United Kingdom for imports from third countries of all documentation and phytosanitary certificates that until now there was no need to do,” Pico Lapuente said.
One issue this poses is a delay to goods being processed and cleared through customs. It is a risk but one that should improve with time.
According to the Trade and Cooperation Agreement published by the U.K. government, both parties will “work towards the further simplification and standardization of the data and documentation required by customs and other agencies.”
“At the beginning of everything, there will always be a small delay in the clearance of shipments made to the United Kingdom because you will have to hire customs agents. Also, in the United Kingdom importers will have to process all the necessary documentation for imports at their customs,” Pico Lapuente said. However, he does not believe it will be a big problem.
In any case, Spain has sent olive oil merchandise in advance to the United Kingdom, to mitigate any potential issues.
In terms of competition and changes to the market, the U.K. has already struck up new trade deals with some countries and there will no doubt be more agreed this year.
“We are careful to see how the exports of other producing countries that do not belong to the European Union evolve because they will not have tariffs and the rest,” Pico Lapuente said. “We will adapt without a major problem.”
Meanwhile, Cristina Stribacu, an olive oil producer in Kalamata, Greece, told BBC News, “We are afraid if our product becomes very expensive, maybe the higher prices will influence the situation and people will choose not to have premium olive oil in their diet. However, I want to be very positive and optimistic that the appetite for healthy food will not change in the U.K.”
Overall, the mood is positive. While there will inevitably be some minor delays as the transition to the new process takes place, having the trade deal secured with no tariffs is a big victory for both sides.
More articles on: European Union, import/export, United Kingdom
Nov. 30, 2022
Europe Rolls Out New Rules Governing Olive Oil Quality
Brussels reviewed olive oil classifications, labeling and marketing. The simplified rules aim at a more homogeneous E.U. olive oil market.
Sep. 30, 2022
European Awards Champion Organic Agriculture
Prizes were awarded to farmers, projects, retailers and regions to promote the bloc’s push to convert one-quarter of its agriculture to organic practices by 2030.
Dec. 30, 2022
‘Pollution Party’ Over as Europe Agrees to More Strict Emissions Trading System
The long waited-for reform of the carbon trading market extends to most economic sectors and provides additional funds for green investment.
Jul. 25, 2022
Rising Olive Oil Prices Do Not Slow Consumption in Europe
Growing demand from households and the recovery of the foodservice sector are the main drivers increasing olive oil sales in the E.U.
Feb. 6, 2023
Organic Producers Take Eco-Score Labels to Court
IFOAM brings a lawsuit accusing Eco-Score labeling of being unfair to organic production and misleading to consumers.
May. 4, 2022
Indonesia to Suspend All Cooking Oil Exports
Indonesia's president has announced a blanket ban on cooking oil exports "until further notice," sparking new tension in global markets.
Oct. 17, 2022
Greece Hails Strong Presence in U.S. Table Olive Market as Exports Rise
Greece ranked second among table olives exporters to the United States in the first half of 2022 but received the highest prices.
Oct. 17, 2022
Italy’s Organic Food Sales More than Doubled in the Past Decade
The value of organic agricultural exports also rose by 181 percent in the same period. Wine led the way, but extra virgin olive oil was not far behind.