Increase in Tunisia’s olive oil export quota causes significant losses for Tunisia (OTE report)


The Tunisian Economic Observatory (OTE) has in a report warned against the increase in olive oil exports to the European Union, either due to the demand of the European market or at the request of Tunisian industrialists.

Unlike the appeals made by the Tunisian Confederation of Industry, Trade and Handicrafts (UTICA) at the beginning of the olive oil campaign, the Tunisian Economic Observatory’s call focused on the liberalisation of olive oil exports to the European market by revising Tunisia’s annual quota.

The Observatory stressed that this call was in line with the free trade policy recommended by the European Union, despite the significant losses caused by this trend in Tunisia.

The report, published at the beginning of December 2023, points out that the export of this important product weakens the country’s income, noting that Tunisia’s exports remain dependent on European production to offset fluctuations and do not meet Tunisia’s export needs.

In the same context, the report explains that exports
are made in large quantities, in bulk and at low cost, resulting in low export value added and a significant loss of foreign exchange.

In 2022, Tunisia exported around 208,000 tonnes of olive oil, 87% of which was in bulk and 13% in packaged form. These products were mainly exported to Europe (66%), where they are packaged before being resold at much higher prices.

Receiving a delegation from the International Olive Council last November, UTICA President Samir Majoul had called for a review of the annual quota granted to Tunisia by the European Union and the removal of all obstacles to the export of Tunisian olive oil.

“The low global consumption of this important substance makes the producing countries not competitors but complementary in the promotion of this vital sector, especially as tariff and non-tariff barriers have only served to increase the price of this product and hinder its access to consumers worldwide.”

The meeting stressed that “humanity’s experience with the COVID-19 pandemic calls for g
reater awareness and foresight for human health.’

Promoting the production and export of olive oil as a healthy product is central to this approach, as is the environmental impact of its cultivation and industrialisation, especially in the face of the challenges of climate change and water stress to global food security.
Source: Agence Tunis Afrique Presse