Economy
Andalusian agricultural sector concerned over massive influx of North African olive oil
The regional government is urging Madrid and Brussels to suspend the special regime that doubles the quota allowed from Tunisia
Sevilla
The olive oil sector of Andalucía is facing a critical situation due to the impact of the massive increase in imports from Tunisia.
In recent ... years, the volume of this product entering the EU market has risen significantly. This has caused a severe distortion in local prices and has put the profitability of Spanish farms under severe pressure, as they are unable to compete amid rising production costs.
The root of the problem lies in a loophole in trade that goes beyond the official agreements. Currently, the bilateral agreement between the EU and Tunisia sets a limit of 57,700 tonnes of duty-free olive oil. However, through the customs procedure known as "inward processing", the actual volume entering the EU can be double that figure.
This allows third countries to import goods without paying duties or taxes, on the condition that they undergo processing before being re-exported or sold.
Andalusian authorities are questioning the legality of applying this customs regime to extra virgin olive oil. The regional ministry of agriculture says that the product does not undergo any technical transformation or industrial processing upon arrival, but rather only basic treatments that do not alter its original nature in any way.
In 2025, more than 61 per cent of olive oil from Tunisia arrived under the inward processing regime. In the first few months of 2026, that percentage rose to over 76 per cent.
What is alarming for the olive sector is that three-quarters of this total volume consists of extra virgin olive oil, the category with the highest commercial value for the Spanish agricultural sector.
Skyrocketing costs
This supply of imported produce is entering a market where the costs of producing a litre of olive oil have soared in recent years, driven by cumulative rises in the prices of energy, fertilisers and agricultural inputs.
Despite this financial pressure on farmers, the price of olive oil at source remains low and is experiencing sharp falls, drastically reducing producers' profit margins.
Regional minister Ramón Fernández-Pacheco has written to the Ministry of Agriculture asking it to take urgent action and intervene with the European Commission to ensure the application of article 195 of the EU regulation.
The Andalusian proposal calls for safeguard mechanisms and for the inward processing arrangements for olive oil to be suspended immediately. There are precedents within the EU (raw cane sugar, to name one example), where the Commission restricted imports to protect the internal market.
The Andalusian sector is now calling for the same decisive action to halt the fall in prices and prevent irreparable harm to olive growers.
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