WTO sides with bloc against US tariffs on Spanish olives

The World Trade Organization (WTO) recently released its final report on the ongoing trade dispute between the European Union (EU) and the United States concerning Spanish black olives. This development signifies a significant victory for the EU. The dispute originated in 2017 when the US imposed tariffs on Spanish olives, alleging harm to American producers due to EU subsidies provided to Spanish olive producers through the Common Agricultural Policy (CAP). The US Department of Commerce then imposed anti-subsidy and anti-dumping duties ranging from 30% to 44% on imports of Spanish black olives. The EU contested these measures at the WTO, leading to a four-year legal battle that concluded in November 2021 with an initial ruling stating that the US actions violated WTO rules. The first panel found fault with the presumption of automatic and full pass-through of subsidies from the producer to the transformer of agricultural products, deeming it insufficient to justify tariff imposition. The recent compliance panel’s final report reaffirms the previous ruling and emphasizes the US’s failure to implement WTO recommendations from 2021. The EU now urges the US to promptly comply and provide relief to the Spanish olive sector affected by anti-subsidy duties since 2018. The decision grants Brussels the authority to take further measures, potentially including retaliatory actions, to ensure full implementation of the panel recommendations by the US. The EU executive aims to engage strongly with the US on compliance before exploring additional options. Beyond the specific impact on the European olive industry, the outcome of this dispute holds broader implications for how EU farming subsidies, historically criticized as anti-competitive and favoring European farmers, are perceived at the WTO level.