The notice of an economist for the change in the price of olive oil

After two very complicated years, the olive oil has experienced the long -awaited drop in prices that consumers expected. However, circumstances can change again. A new front has been opened in the United States threatens to destabilize the market again. The imposition of 20% tariffs on European products is to blame for it.

The renowned economist Santiago Niño Becerra has released a warning in the television program ‘Everything is a lie’ if this tariff measure continues, since the consequences will be devastating. “If this process continues and with this structure, the international trade we have known has died.” And, although Spain does not have excessive commercial dependence on the United States, there are products that depend largely on this market. In the case of olive oil, 40% of exports have a destination North America.

Child Becerra has explained that the tariff policy announced by the United States has not been an isolated movement or improvised gesture. His intention is to move to the rest of the world part of the American commercial deficit. One way that its partners are part of the cost of the country’s economic imbalance.

Spain exports little to the United States in relative terms (about 18,000 million dollars), but the olive oil sector is one of the most exposed. Becerra was clear: «40% of the oil that Spain exports exports to the United States. So, if the famous tariff on the oil is concretized, this will be an ax for oils, which are going to suffer a lot ». Although he also clarified that, “in the European team it is a ridiculous amount.”

The economist points the two possible paths that could occur if the tariffs are finally completed. On the one hand, if the products that were previously sent to the United States stay in Europe, there would be an oversupply, which in theory could lower prices. However, the expert raises another more disturbing option: “If the supply of more goes on the market, prices would go down, but what the producers want is to maintain margins, they could even raise prices retaining them the offer.”

From the agri -food sector, the DCOOP cooperative has indicated that the imposition of tariffs directly harms the entire production chain, from farmers to distributors. But where it will be noticed the most it will be in the last link, which Ono is another that the consumer.