Castilla-La Mancha cooperatives seek suspension of duty-free olive oil imports

Cooperativas Agro-alimentarias de Castilla-La Mancha is calling for the suspension of Inward Processing Relief (TPA) for olive oil imports to prevent market distortions. The organization has requested that the regional Minister of Agriculture, Livestock, and Rural Development, Julián Martínez Lizán, propose to the Ministry of Agriculture, Fisheries and Food that the European Commission initiate procedures to suspend this duty-free import regime.

The cooperative group argues that TPA was intended for exceptional shortages of raw materials rather than as a structural tool. They claim the current application allows Tunisian olive oil to replace Spanish oil in international markets. Specifically, they note that because the United States imposes tariffs on olive oil from the European Union, some operators are importing large quantities of Tunisian oil under the TPA regime to package and re-export it to the U.S., thereby evading tariffs.

This practice is reportedly causing significant market distortion. The organization points to price indicators, noting that extra virgin olive oil prices in the current campaign are approximately 25% lower than expected due to these factors.