Source: Oleoscope (Russia)
On March 11 of this year, a provisional free trade agreement came into effect between Chile and the European Union. This agreement eliminates tariffs on the initial 11,000 tons of Chilean olive oil exported to the EU.
It is anticipated that the arrangement will be in force until all 27 EU member states ratify a more extensive trade memorandum, as reported by Olive Oil Times.
Chile’s national customs authority has indicated that in 2023, the nation exported 17,500 tons of olive oil valued at $117 million. The United States was the leading exporter with 5.56 thousand tons, followed closely by Brazil at 5.44 thousand tons, and then Spain (3.35 thousand tons), Italy (1.3 thousand tons), and Portugal (1.13 thousand tons). Data from Eurostat reveals that the remainder of the EU imported only around six tons.
In addition to eliminating 99.9 percent of duties on exports to Chile from the EU, the agreement also safeguards 216 European geographical indications, though it does not offer any extra benefits for European olive oil exporters.
According to Eurostat statistics, the EU exported 417 tons of olive oil worth €2.9 million to Chile in 2023, with Spain contributing 315 tons and Italy 101 tons, making up almost the entire volume.
Industry experts believe that given Chile’s production capacity, the threshold of 11,000 tons is relatively generous. Olive oil production in Chile dropped to 15,000 tons in 2024 due to extreme temperatures in the north and significant rainfall in the central region; however, producers are optimistic about an increase in figures this season. The 2024 report from Chile’s Agricultural Research and Policy Directorate has identified the EU as a key market for the enhancement of production and exports.
Recent data from the International Olive Council (IOC) projects a 10% growth in global olive oil consumption for the marketing year 2024/25 compared to the previous season, surpassing 3 million tons.