Mallorcan Wineries hope for the best & expect the worst

US tax on European Agri-Food products

Mallorca Vineyard. archive photo. | Ultima Hora

Majorca Daily Bulletin reporterMallorca-International26/12/2020 12:15

In October 2019, the Trump Administration slapped a 25% tax on certain agri-food products from European countries and the main Mallorcan wine exporters doubt that anything will change under Joe Biden’s rule, at least in the short or medium term.

Ànima Negra exports 80% of its wine and the United States is its biggest customer. Miquel Àngel Cerdà says a change of tenant in the White House wasn't taken into account when exports were being planned for 2021 and he suspects that the tariffs imposed a year ago are unlikely to be withdrawn quickly, if at all.

But Cerdà says the upside is that the winery was forced to explore new markets in Asia, Ecuador and Finland and that the drop in exports to America was offset by an increase in sales to Denmark, Switzerland, Germany, Mexico and Canada.

Ànima Negra sold around 40,000 bottles a year to America and a large amount of its wine was exclusively exported to the US including half of its Quíbia white wine which amounted to 15,000 bottles.

Cerdà spearheaded Ànima Negra’s entry to the US wine market 15 years ago and opene America's door for many other Mallorcan wineries, who are equally concerned about what President Joe Biden will do about the tax on European produce.