On January 12, 2023, the U.S. Government took a step that has the entire California olive industry buzzing with excitement and hope. The decision in question? Implementing the World Trade Organization (WTO) ruling on Spanish olive imports to ensure U.S. laws are upheld and domestic markets are protected.

Spanish Olive Imports Under the Lens

For years, Michael Silveira, Chairman of the Olive Growers Council of California, has echoed the sentiments of many in the industry. He emphasized that the Spanish olive industry has continuously benefited from outsized European Union (EU) subsidies. This resulted in the flooding of the U.S. market with unfairly subsidized Spanish olives.

This dumping threatened the livelihoods of countless American family farmers, jeopardizing the vibrant American table olive production landscape. Had the U.S. Government not imposed antidumping (AD) and countervailing duty (CVD) orders on Spanish olives, the industry’s backbone could have crumbled.

The Long-Standing EU Subsidy Issue

The EU’s subsidy system for the olive industry has long been a bone of contention. This system, often seen as protectionist, has granted Spain’s olive industry disproportionately large financial benefits. To put it simply, it allowed the Spanish industry to benefit unfairly at the expense of American producers.

Back in 2018, when the U.S. decided to stand against this by issuing its olive AD and CVD orders, the EU wasn’t silent. They challenged these orders at the WTO. It wasn’t until November 2021 that the WTO laid down its judgment, paving a way for the U.S. Government to uphold the AD and CVD tariffs on Spanish olives.

Notably, the WTO ruling found no fault with the U.S. Government’s AD findings. It confirmed that the EU grower subsidy payments were indeed under the ambit of U.S. CVD disciplines.

Addressing WTO Concerns

While the WTO raised eyebrows at some aspects of the U.S. Government’s determinations, especially declaring the U.S. trade law known as “Section 771B” to be inconsistent with WTO standards, the U.S. addressed these issues head-on. The new decision highlights that while only Congress has the power to alter U.S. law, Section 771B offers ample administrative discretion to tackle any WTO inconsistencies.

Michael Silveira didn’t mince his words when he said, “The EU desires for the Biden Administration to turn a blind eye, allowing the Spanish industry to revert to its old ways. This would not only bolster the EU’s protectionist policies but also erode U.S. food security.”

A Bright Future for California Olive Growers

With the U.S. Government’s decision, there’s a newfound optimism. California olive farmers are now better positioned to invest in modern farming techniques. Initiatives such as the “One Million Tree initiative” are monumental, marking the industry’s transition to modern, drought-friendly practices.

Dennis Burreson, a notable figure in the California olive industry, encapsulated the sentiment perfectly. He lauded the efforts of the Administration and the industry’s Congressional delegation. In his words: “The olive case, along with our proactive industry investments, exemplifies the way forward – breaking free from unfair trade practices and championing high-quality, eco-friendly American production.”

In summary, the U.S. Government’s recent decision marks a significant stride in ensuring that American olive producers get a level playing field, emphasizing the importance of domestic production, sustainability, and food security. The future looks bright for the California olive industry.