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Tariffs Announced on European Cheeses, Wines and More
Italian, Spanish and British cheeses will be subject to 25 percent tariffs that will go into effect on October 18, the U.S Trade Representative has announced. Irish and Scotch whiskies, Spanish extra-virgin olive oil, Italian and British liqueurs and French wines are also among the wide array of European food and beverage tariffs announced October 2 by the USTR. The tariffs result from a dispute between the U.S. and E.U. over subsidies to Airbus that the World Trade Organization had previously ruled were illegal and are the subject of the largest arbitration award in WTO history, according to the USTR.
“We’re going to see price shock on the shelves,” said Salvatore Russo-Tiesi, General Manager and President of the U.S. office of Bono, the brand belonging to Bonolio s.a.s., which makes extra-virgin olive oil in Italy, Tunisia and a new factory in Spain. Italy is not among the list of European countries facing a tariff on extra-virgin olive oil. The company launched its Spanish Organic Extra Virgin Olive Oil into the U.S. market last month at Natural Products Expo East. “The very best olive oil out of Spain is just as good as Italian olive oil. When made right, the best olive oil can come from many different countries, not just Italy,” Russo-Tiesi said.
Under WTO rules, the EU is not allowed to institute retaliatory tariffs, but Russo-Tiesi expects that may happen anyway. “I think Europe is going that way because they’re trying to play hard ball, saying that we don’t think America will want to fight a second trade war,” he said.
The WTO decision allowing the U.S. to move ahead on the tariffs follows four previous panel and appellate reports from 2011-2018 finding that EU subsidies to Airbus break WTO rules. “For years, Europe has been providing massive subsidies to Airbus that have seriously injured the U.S. aerospace industry and our workers. Finally, after 15 years of litigation, the WTO has confirmed that the United States is entitled to impose countermeasures in response to the EU’s illegal subsidies.,” USTR Robert Lighthizer said. “Accordingly, the United States will begin applying WTO-approved tariffs on certain EU goods beginning October 18. We expect to enter into negotiations with the European Union aimed at resolving this issue in a way that will benefit American workers.”
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The award of $7.5 billion annually is by far the largest award in WTO history – nearly twice the largest previous award. The Arbitrator calculated this amount based on WTO findings that EU launch aid for Airbus is causing significant lost sales of Boeing large civil aircraft, as well as impeding exports of Boeing large aircraft to the EU, Australia, China, Korea, Singapore and UAE markets. Under WTO rules, the Arbitrators decision is final and not subject to appeal.
The United States has requested that the WTO schedule a meeting on October 14 to approve a U.S. request for authorization to take countermeasures against the EU. Pursuant to WTO rules, the WTO will provide this authorization automatically at that meeting.
The tariffs will be applied to a range of imports from EU member states, with the bulk of the tariffs being applied to imports from France, Germany, Spain and the United Kingdom – the four countries responsible for the illegal subsidies. Although USTR has the authority to apply a 100 percent tariff on affected products, at this time, the tariff increases will be limited to 10 percent on large civil aircraft and 25 percent on agricultural and other products. The U.S. has the authority to increase the tariffs at any time or to change the products that are affected, and the USTR will be re-evaluating these decisions continually based on discussions with the EU.
Fairway Campaign to Highlight Greek Authenticity
By Lorrie Baumann
Fairway Market, which operates stores in New York, Connecticut and New Jersey, has partnered with Olive Roots on a program that will give its customers the chance to discover a variety of authentic foods from small Greek and Cypriot producers. “I am looking forward to our Greece country program to see the success of the new brands we selected,” said Chris Garzino, Fairway Market’s Director of Specialty. “Many of the brands will be new to the U.S. and I believe they will give our customer a greater feel into the culture of the country.”
Olive Roots is a boutique specialty food exporter that specializes in streamlining the process of bringing more Greek food products into the U.S. “Lots of these products are really hard to find,” said Olive Roots Founder Katerina Barka. “You’d have to travel and get lost on your way to find the village – it’s impossible to find them anywhere.”
Barka launched her company at the 2018 Summer Fancy Food Show after noticing that the Americans she knew were appreciative of the Greek products she was sharing with them, but neither they nor she could find them in American stores. When she approached Fairway Market, the buyers’ first response was a little quizzical, since she was making the kind of inquiry on behalf of Greek food and food producers that they’d ordinarily expect to hear from a country’s trade mission. “They looked at us like, ‘Who are you?’” Barka said. But they listened to her proposal and eventually agreed that they’d go to Greece and let Barka introduce them to artisanal food producers from Greece and Cyprus. “They had meetings with all of them,” Barka said. “We presented them with the best of the best companies.”
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Ultimately, Fairway agreed to provide shelf space for products from 18 of those companies for a six-month trial period. “Those that do well will stay here indefinitely, like any other brand,” Barka said. Fairway will also kick off the trial with a three-week promotion that includes publicity and in-store demonstrations and sampling events. “As part of the promo campaign, we will run a contest,” Barka said. The contest will offer participating shoppers the chance to win one of two culinary-focused trips, one to Greece and one to Cyprus. The promotional campaign will kick off with a September 26 breakfast at Fairway’s Red Hook store and continue for the following three weeks through October 17.
The products selected by Fairway for its shelves include estate olive oils, natural jams and juices, baking mixes, artisan cheeses, spiced sea salts, raw honey and honey spreads and traditional soup mixes, cookies and sesame spreads. “Most of the products will make their debut in the U.S. market and are products that, until now, one could only find if they traveled to Greece and a local gave them foods from their pantry,” Barka said.
Barka is optimistic that Fairway’s shoppers will enjoy the opportunity that Fairway is presenting. She points out that Americans are interested in the Mediterranean diet and that many are already familiar with Greek cuisine. Greek-Americans have done a good job of running festivals spotlighting Greek cuisine across the U.S., so there are Americans everywhere who are potential customers for the products they’d need to duplicate aspects of that cuisine for their own tables, she said. “We are looking into opening up more stores for these kind of products,” she said. “Americans love Greek food – there’s not a lot of real Greek food here. We will see more…. Eventually, we’d like to have a lot of these products available.”
