ARCHIVED - Lemon, olive oil and cheese exporters in Murcia worry as Trump trade tariffs come into force

The aim of increasing lemon exports to the USA looks unrealistic in the light of the new tariffs

As of Friday 18th October the new trade tariffs levied by Donald Trump’s government on exports from the EU to the USA come into force, imposing a customs duty of 25 per cent on certain products and representing a serious threat to the exports of various sectors within the economy of the Region of Murcia.

There are hopes that the new tariffs could be lifted before too long as the EU seeks a compromise to end the trade dispute with the EU, but in the meantime there is considerable concern in Murcia, particularly among lemon growers and olive oil, wine and cheese producers. Last year businesses in the Region made sales of over 40 million euros to the USA, and in Spain as a whole the Banco de España estimates that exports to the US could fall by around 12 per cent.

Antonio García of the lemon and grapefruit producers association Ailimpo reports that last year Spain exported some 7,000 tons of lemons to the USA for 7.8 million euros, much of that coming from the Region of Murcia – this is a relatively small amount, equating to only around 1 per cent of all lemon exports, but the aim had been to increase the figure to around 25,000 tons and that objective now looks unrealistic after the introduction of the tariffs.

As for wine, the 25 per cent tariff refers only to drinks which are under 14 per cent proof, but even so the wine-producing areas of Jumilla, Yecla and Bullas could find themselves seriously affected. The USA is the fourth most important export market for Murcia wines, having ordered 500,000 litres during the 2018-19 season, and for many “bodegas” North America is their main source of demand.

Cheese is another sector affected: the USA is the largest export market for chees from Murcia, accounting for sales of 19 million euros last year with varieties such as “queso de cabra al vino” (goat cheese with wine) being viewed as a delicatessen product on the other side of the Atlantic.

In Spain as a whole the sectors most affected are reported to be the following virgin olive oil (exports of 270 million euros in 2018), wine (excluding sparkling) (216 million euros), olive preserves (155 million euros), other olive oil (136 million euros) and cheeses (71 million euros), with other products affected by the new tariffs including fruit, liqueurs, aircraft, meat products, seafood and some dairy products.

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