Will Trump’s ‘trade war’ also impact the EU Common Agricultural Policy?
Politico reports that Brussels is fearing Spanish olives, and potentially the EU’s agricultural policy as a whole, are the next potential victims of Donald Trump’s “America First” policy.
The U.S. Department of Commerce opened a probe last month to determine whether to slap duties on ripe olives from Spain, after Californian producers argued their Iberian rivals receive an unfair advantage because of the EU’s lavish farm subsidy scheme.
This could undermine €58 billion-per-year Common Agricultural Policy.
For Brussels, the case could set an alarming precedent. Under the sacrosanct Common Agricultural Policy, the EU pours about 40 percent of its budget into farm subsidies and it is highly protective of any trade investigation that questions the legality of those payments. Last year, Brussels pushed back hard against Australia’s moves to put tariffs on Italian tinned tomatoes.
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