Olive Oil Exporters Seek Support Against US Tariffs
· Bloomberg HT
Following the US's imposition of a 12.5% additional customs duty on Turkish olives and olive oil, sector representatives have requested the reintroduction of DFIF premiums.
US Tariffs and Competitive Pressure
With a decision by the US Trade Representative's Office, an additional customs duty of 12.5% has been imposed on olives and olive oil exported from Turkey to the US, on top of existing tariffs. Alper Alhat, Chairman of the Akhisar Commodity Exchange, stated that the Turkish olive oil sector is at a disadvantage in its largest market due to Tunisia being exempt from these tariffs and lower tariffs being applied to European Union products. Alhat reported that exporters, who are trying to protect the market with a 3% foreign exchange conversion support during a period when olive oil prices in Spain are lower than in Turkey, are facing difficulties.
Demand for Reinstatement of DFIF Support
Akhisar Commodity Exchange Chairman Alper Alhat emphasized the urgent need to reintroduce the Support and Price Stabilization Fund (DFIF) premiums, which were abolished three years ago in line with World Trade Organization rules, stating:
"What does the WTO say about the different tariffs the US applies to olive oil producing countries? We request the reintroduction of export supports we previously benefited from to alleviate the difficulties caused by US tariffs and exchange rates."
Highlighting the cost burden imposed by the tariffs, Akhisar Commodity Exchange Chairman Alper Alhat made the following assessment:
"This additional tariff is beyond the scope we can subsidize."
In previous periods, support of $650 per ton was provided for small-packaged olive oil, and $260 per ton for table olives.
Potential Impacts on the Entire Value Chain
It was stated that the loss of markets in packaged product exports would negatively affect not only exporting companies but the entire agricultural value chain, from producers to industrialists, packaging, and logistics. Akhisar Commodity Exchange Chairman Alper Alhat called for both continued diplomatic initiatives and the re-establishment of the DFIF mechanism to protect distribution channels and brand awareness built over years in the US market. Alhat added that it is crucial for public authorities to intervene without delay to prevent temporary cost increases from turning into permanent market loss.