Brazil removes tariffs on European olive and sunflower oils

The Brazilian government’s removal of tariffs on EU imports of olive and sunflower oils – previously set at 9% – has been welcomed by European producers, Olive Oil Times wrote.

In addition, tariffs had been removed for pasta, rice, meat, coffee, sugar, cookies, sardines and corn, the 28 March report said.

The aim of the Brazilian federal government’s move was to support households affected by high prices, Olive Oil Times wrote.

Olive oil was included as its popularity had increased among Brazilians over the last few decades, with consumers increasingly aware of its health benefits, the report said.

According to International Olive Council (IOC) data, Brazil consumed an average of 96,800 tonnes/year of olive oil over the last five years, compared to 23,700 tonnes from 2001-2005.

While data analysed by Olive Oil Times showed that Brazilian olive oil production had increased from six tonnes in 2013 to 531 tonnes in 2023, domestic demand still exceeded national production.

Welcoming the Brazil government’s move, Spain’s Minister for Agriculture, Fisheries and Food Luis Planas said Spanish food exports to Brazil totalled €122.9M (US$135.6M) from October 2023-September 2024.

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Although Spain exported 11,284 tonnes of olive oil to Brazil in the first nine months of 2024, Portugal remained the leading exporter of olive oil to the South American country, with 60% of Brazil’s olive oil imports shipped from Portugal in 2023, the report said.

According to the UN Comtrade database, Italy is also a significant olive oil exporter, shipping approximately 4,000 tonnes to Brazil in 2024.

Walter Zanre, the managing director of Filippo Berio UK, told Olive Oil Times that he expected Brazilian olive oil consumption to continue to rise as prices at origin fell in Europe.

“Italy is the biggest market followed probably by the USA. We think that in time, Brazil might become the third biggest consumer of olive oil globally.”

Following the removal of tariffs, all major olive oil exporters are expected to increase their market share in Brazil, according to the report.

While driven by its specific economic situation, Brazil’s move came at a crucial time in trade relations between Brazil and the EU, where most olive oil is was produced, Olive Oil Times wrote.

In early December 2024, the European Commission (EC) and four founding members of Mercosur (Argentina, Brazil, Paraguay and Uruguay) announced that a free trade agreement had finally been concluded.

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According to the EC, removing tariffs will create a range of new opportunities.

However, olive oil producers across the Mercosur had raised concerns that cheaper European olive oils would impact the market share of domestic producers, an earlier 16 December Olive Oil Times report said.

Although the Mercosur-European Union free trade deal still needed to be approved by individual countries and Europe and its parliament before coming into force, it would create the largest free trade area globally, the 28 March Olive Oil Times report said.

This article has been republished from The Oils & Fats International Magazine.