The entry of olive oil from Tunisia at reduced prices is exerting high pressure on the Portuguese market, according to the Office of Planning, Policies and General Administration (GPP). The organization states that prices in the Spanish market significantly influence the domestic market, preventing producers from covering production costs and causing severe liquidity constraints. This situation is particularly relevant for the Alentejo, one of the main olive oil-producing regions in the country.
The neighboring Spanish region of Extremadura requested that Madrid's government present to the European Commission a review and possible suspension of the inward processing regime applied to olive oil imports. This customs mechanism allows goods from third countries to enter European territory without paying customs duties while they remain covered by the regime. The letter was sent on September 11 by the Spanish Ministry of Agriculture, Fisheries and Food.
Over the past five months, Spain imported more Tunisian olive oil than the almazaras (olive oil mills) in Extremadura produce in an entire year. According to data from the Junta de Andalucía, 61.6% of Spanish imports of Tunisian olive oil entered under the inward processing regime in 2025, a proportion that increased to 76.3% between January and April 2026. The European Union has a trade quota of 57,700 tonnes of Tunisian olive oil exempt from customs duties, but the Andalusian authorities argue that significant additional quantities are entering through the regime.
Extremadura also requested detailed information about authorizations granted over the last five years, including imported quantities, origin countries, and volumes subsequently re-exported or placed in free circulation. In an interconnected Iberian market, any potential intervention by Brussels could have consequences that extend beyond the Spanish market and affect Alentejo producers.
