Date Published: 04/10/2019
ARCHIVED - Dismay in Murcia and the rest of Spain at the latest batch of Trump trade tariffs
ARCHIVED ARTICLE
Wine, olive oil and lemon producers in Murcia are among those affected
Donald Trump’s decision to impose trade tariffs of 25 per cent, amounting to a reported total of 7 billion euros, on certain groups of products exported to the USA from the EU, has caused widespread dismay throughout Europe and in many sectors of the Spanish economy, including various of great importance in the Region of Murcia.
Among the sectors which stand to suffer most harm in Murcia are citrus fruit growers and wine and olive oil producers. Antonio García of the lemon and grapefruit producers association Ailimpo, for example, 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.
There is hope that the details of the tariffs, which come into force on 18th October, will specify exemptions or reductions for cheaper products, but in the meantime plenty of winery owners are holding their breath anxiously.
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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