Malaga business' chief urges government to be more cautious in its opposition to Trump

President of the Malaga and Andalucía employers' associations Javier González de Lara is concerned about two of the repercussions of the armed conflict in the Middle East.

On the one hand, there are the companies that have deliveries to the Middle East paralysed by the closure of maritime traffic in the area. On the other hand, there is the threat that Donald Trump will keep his promise and cut off trade relations with Spain.

According to González de Lara, PM Pedro Sánchez's undisputed opposition to the actions of the US in the Middle East can harm Spain's economy. The employers' chief calls for "intelligent diplomacy" to come before what he describes as "unilateral actions and gestures with obvious political and economic risks".

"We hope that our government will be able to redirect this situation," he said on Wednesday.

One of Malaga's main producers, Dcoop, has already had to rethink one of its major strategies. The company has decided to put on hold a business deal it had been developing to consolidate its position in the American market. This deal involves the purchase of the remaining 50 per cent stake needed to acquire 100 per cent of Pompeian - the leading olive oil brand in the US.

Dcoop sources are not hiding their concern over Trump's threats and warn that the government should not treat them lightly. "Those who say the US can't impose tariffs solely on Spain seem to have forgotten that during Trump's previous term, tariffs were imposed on Spanish products but not on those from the rest of Europe, such as Italy," they have stated.

In his statement on Wednesday, González de Lara highlighted the direct effects that the blockade of transport networks and commercial activity has on companies in Malaga.

"We are aware of the uncertainty over the fate of goods from our province that are on their way to Middle Eastern countries, with no prospect of arrival at the moment. This especially affects the agri-food sector, companies that export mainly olive oil and olives, but also machinery, capital goods and construction materials," he said.

"If the situation drags on and the market does not recover soon, we will suffer the consequences. It is true that the Middle East and the Arab countries are not a major destination for our exports, but they are for companies in the province that focus on these countries, with a significant volume of sales and even headquarters in some of them," he stated.

Moreover, there is the global economic impact caused by "higher oil prices and their knock-on effect, with higher energy prices and consumption-intensive sectors, as well as increased uncertainty that generates tension in the markets".

Local employers hope that the sides of the conflict "will resolve it as soon as possible". They also ask the government for "the necessary support to deal with the situation". "The most urgent thing: attention to the people who are in the affected area, the goods in transit, the operations in progress and, of course, the possible economic losses," González de Lara concluded.