EU trade deal: Duty-free olive oil exports, Kalamata GI use rights retained

By Laura Thomas

Australian olive oil exports will soon enter the European Union duty-free, under a landmark trade agreement reached this week.

The new Australia-European Union Free Trade Agreement – under negotiation since 2018 – is set to “open doors into the EU for premium, sustainable Australian agricultural products”, according to Federal Government information released on Tuesday.

The deal delivers some good news for Australian olive oil exporters, who will see the elimination of tariffs of $2,356 per tonne, over 3 years.

However, it will also introduce protections and usage conditions for a range of geographical indications (GIs) such as “Kalamata”.

GI terms convey a product’s place of origin, its linked qualities and reputation, and are widely used and commercially valuable to Australian producers.

The Kalamata olive – named after its city of origin, in the Messinia region in southern Greece – is just one of many newly protected GIs which can continue to be used by Australian producers under specific provisos.

A further 11 GIs will be grandfathered for existing users only and eight completely phased out in the coming years.

Ensuring continued use of the Kalamata GI had been a major priority – and sticking point – for the Australian olive industry during the marathon trade agreement negotiation process.

Australian Olive Association Chief Executive Officer Michael Southan said he was pleased to report the freshy-inked trade deal offered some positives for olive growers.

“Australian farmers continue to suffer under the weight of an uncertain global trade environment and soaring input costs,” he said.

“For the olive industry and many others, this agreement offers the elimination of tariffs and the potential for new and increased export opportunities into lucrative EU markets.”

Retention of the Kalamata GI for table olive and oil labelling and marketing, provided its use is not misleading to consumers, represents another win for the industry according to Mr Southan.

“The word Kalamata is globally recognised as an olive variety and has been grown in Australia for well over a century. The word has evolved to become synonymous with olives and is no longer solely the name of a city in Greece,” he said.

“Our industry has long campaigned against its complete protection and restrictions which would have prevented growers from using it on their olive products.

“Trade regulations like this would have been a logistical and financial nightmare for Australian Kalamata table olive and oil producers. The cost of rebranding, relabelling and remarketing would have been immense.

“This is a very good outcome for the Australian olive industry.”

More information

Visit the DFAT website for the full list of GI protection overview and provisions for use. Please note: This should be used as a reference only, pending the final trade agreement outcome and official agreement wording.

Further detail and clarification is expected to be provided to the AOA and other affected industry groups during a Department of Foreign Affairs and Trade briefing next week.

Find out about European export opportunities available for different sectors.

Sources:
www.dfat.gov.au
www.austrade.gov.au
www.export.business.gov.au
www.australianolives.com.au