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๐Ÿ“ฆ Olive oil and its fractions, whether or not refined, but not chemically modified

Olive oil and its fractions, whether or not refined, but not chemically modified

HS Code:

๐Ÿ“ฆ

Overview

Olive oil and its fractions, whether or not refined, but not chemically modified (HS Code: 1509), encompass a range of products derived from olives, including virgin olive oil, refined olive oil, and olive pomace oil. This category is a critical component of the global edible oil market, widely used in cooking, food preparation, and cosmetics. Olive oil is predominantly produced in Mediterranean countries, where climatic conditions favor olive cultivation. It is valued for its health benefits, including high levels of monounsaturated fats and antioxidants, which have driven demand in health-conscious markets worldwide.

Total Trade Volume

3.2 million metric tons

Data from 2022

Source

International Olive Council (IOC) and UN Comtrade Database

Tariff Analysis

Average Rate

5.2% ad valorem

Highest Rate

20% (applied by certain non-EU countries on imports)

Lowest Rate

0% (within EU member states under Common Agricultural Policy and free trade agreements)

Common Restrictions

  • Import quotas in some non-producing countries
  • Strict labeling and quality standards (e.g., EU regulations on 'extra virgin' designation)
  • Phytosanitary requirements for pest control
  • Subsidies for domestic producers in some regions, indirectly affecting trade

Market Trends

Growing demand for organic and extra virgin olive oil

Increased exports from Mediterranean countries to health-conscious markets like the US and Northern Europe

2020-2022

Climate change impacting production

Erratic weather patterns in Mediterranean regions have led to fluctuating yields, affecting export volumes and prices

2019-2022

Rising competition from alternative oils

Increased availability of cheaper alternatives like sunflower and canola oil has pressured olive oil market share in price-sensitive regions

2021-2022

Recent Developments

EU-US Tariff Reduction Agreement

The EU and US agreed to reduce tariffs on olive oil imports as part of a broader trade deal, facilitating greater market access for European exporters.

August 2021

Boosted exports from Spain and Italy to the US, increasing trade volume by approximately 10% in 2022.

Tunisiaโ€™s Record Harvest

Tunisia reported a record olive harvest in the 2021-2022 season, leading to a significant increase in export volumes.

March 2022

Strengthened Tunisiaโ€™s position as a key supplier to the EU and Middle Eastern markets, driving down regional prices.

New EU Labeling Regulations

The EU introduced stricter labeling requirements for olive oil to combat fraud and ensure quality, mandating clearer origin and quality designations.

January 2023

Increased compliance costs for exporters but enhanced consumer trust in European olive oil products.