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Olive Oil Times reported that the Brazilian government has scrapped import tariffs on olive oil and sunflower oil from the European Union, which had previously stood at 9%, a move welcomed by European producers.
The tariff elimination also covered other goods such as pasta, rice, meat, coffee, sugar, biscuits, sardines and maize, according to a report published on 28 March.
The move by Brazil's federal government aims to support households affected by rising prices, the report said.
The report explained that olive oil's inclusion in the decision came as a result of its growing popularity among Brazilians over recent decades, alongside greater awareness of its health benefits.
According to data from the International Olive Council (IOC), Brazil's average olive oil consumption over the past five years stood at around 96,800 tonnes annually, compared with just 23,700 tonnes in the 2001–2005 period.
Although Brazil's olive oil production rose from 6 tonnes in 2013 to 531 tonnes in 2023, domestic demand still far exceeds national output.
Spain's Minister of Agriculture, Fisheries and Food, Luis Planas, welcomed the move, noting that Spanish food exports to Brazil totalled €122.9 million ($135.6 million) between October 2023 and September 2024.
Although Spain exported 11,284 tonnes of olive oil to Brazil during the first nine months of 2024, Portugal remained the leading supplier, accounting for 60% of Brazil's olive oil imports in 2023.
The Olive Oil Times report also noted that Italy was another major exporter, shipping around 4,000 tonnes to Brazil in 2024, according to the UN Comtrade database.
Walter Zanre, managing director of Filippo Berio UK, told Olive Oil Times that he expects olive oil consumption in Brazil to keep rising as prices in Europe fall.
"Italy is the biggest market, followed perhaps by the United States, but we believe Brazil could in future become the world's third-largest consumer of olive oil," he said.
According to the report, all major olive oil exporters are expected to increase their market share in Brazil following the removal of tariffs.
The report noted that while the move stems from Brazil's own particular economic circumstances, it comes at a critical juncture in trade relations between Brazil and the European Union, where most of the world's olive oil is produced.
In December 2024, the European Commission and the four founding members of the Mercosur bloc (Argentina, Brazil, Paraguay and Uruguay) announced they had reached a free trade agreement between the two sides.
The European Commission said the removal of tariffs would open up new trade opportunities.
However, olive oil producers in Mercosur countries have expressed concern that cheaper European oils could erode their market share, according to an earlier report published on 16 December.
Although the Mercosur–EU trade agreement still requires approval from member states on both sides and the European Parliament before it can take effect, it would form the largest free trade area in the world, according to the 28 March report.
Source: Al Mal Forum