The European Council has approved a free trade agreement (FTA) between the European Union and Vietnam.
The FTA is expected to come into force during the summer of 2020, after it is passed by the Vietnamese National Assembly.
Once approved, existing tariffs on olive oil in all of its fractions will be eliminated. E.U. olive oil exports to Vietnam currently face an average tariff of 8.7 percent, according to data from the International Trade Center.
In a 2019 report on the Vietnamese olive oil market, the Spanish Institute for Foreign Trade (ICEX) listed these tariffs as one of the major barriers preventing more Spanish olive oil producers from accessing the lucrative market.
The removal of the tariffs now paves the way for olive oil exporters to access Vietnam’s rapidly rising middle class. The Southeast Asian country is home to more than 95 million people and is viewed as fertile ground for European olive oil exporters due to steadily rising wages and consumer spending.
“Olive oil is well known and appreciated in Vietnam where it is mainly used for its healthy qualities,” ICEX wrote the report. “Almost all media devoted to health, beauty or lifestyle recommend the use of olive oil.”
Spain, Italy and Greece already combine to dominate the Vietnamese olive oil market, making up nearly 97 percent of its olive oil imports in 2018, the last year for which data is available.
Also included in the deal is the recognition of seven different geographical indicators from both Spain and Greece, including Antequera, Baena, Priego de Córdoba, Sierra de Segura, Sierra Mágina, Kalamata and Sitia Lasithiou Kritis.
Related Articles
Dec. 14, 2024
E.U Report Predicts Stagnant Olive Oil Market
Olive oil production and consumption will be flat or slightly declining over the next ten years, a European Commission report predicts.
Oct. 18, 2024
European Union Olive Oil Production Set to Grow by One-Third
Brussels’ autumn short-term outlook predicts volatile prices.
Dec. 16, 2024
Europe and South American Countries Sign Controversial Free Trade Agreement
The Mercosur-European Union free trade deal still needs to be approved by individual countries and Europe and its parliament before coming into force.
Jun. 26, 2024
Rising Olive Oil Imports Contribute to Spain’s Trade Deficit with Argentina
While Spain’s agricultural trade deficit fell by 33 percent between 2022 and 2023, olive oil imports increased by nearly 230 percent due to a poor harvest and rising prices.
Apr. 10, 2024
Farmers Protest European Agricultural Policies in Madrid
The protestors demand exceptions for European environmental regulations that they argue make their products less competitive on the global market.
Aug. 7, 2024
Hazara’s Olive Oil Boom Lays Roadmap for Pakistani Sector
Systematic grafting and planting programs, new mills and efforts to educate farmers and millers have resulted in a rapid rise in production in one critical Pakistani region.
Mar. 22, 2024
The Growing Pains of Albania’s Ascendant Olive Oil Sector
Production has doubled in the past decade and is expected to continue to rise. Some worry that quality will not follow suit.
Feb. 20, 2024
New Research Rekindles Debate on Nutri-Score’s Effectiveness
The OECD found Nutri-Score could save money on healthcare. Dutch researchers questioned the integrity of studies supporting the labeling system.