The Balearic Government has announced an initial package of measures to mitigate the effects of US tariffs. It amounts to six million euros and was presented on Wednesday prior to the news of the 90-day pause. EU products are, for now, subject to the 10% baseline rate rather than the 20% first announced by President Trump.
The Balearic president, Marga Prohens, said after a meeting with business and union representatives that the package of measures will be implemented over the next four months and includes funds that can be increased if they prove to be insufficient.
One element is 3.5 million euros for business competitiveness and exports. Government calculations suggest this will be the cost to companies "to assume the impact of the tariffs in this initial period and be able to continue competing with the same prices for their exports to the United States". For this to be effective, though, there will need to be relaxation of the EU 'de minimis' regulations on aid to businesses.
The second line is two million euros to reinforce funds already planned for the promotion of local products, especially agri-food products, both nationally and in Europe, and especially to the main tourism supplier markets. "Now, more than ever, we need to highlight and promote our products as much as possible." The president said the government will work with island councils to ensure compliance with the 3% consumption of local products in hotels.
Thirdly, and in cooperation with chambers of commerce, €500,000 will be allocated to launch trade missions to open and stimulate new markets, primarily in Asia and Latin America, for the export of Balearic products.
Prohens emphasised the importance of the more than 18 million tourists who come to the Balearics. "They are now more valuable than ever. And we are once again looking at the tourism sector as an opportunity to promote and sell local products."
According to Professor Antoni Riera of the Fundació Impulsa for Balearic competitiveness, the US accounts for just 0.8% of Balearic exports rather than the two per cent which has otherwise been stated. These exports are chiefly wine, olive oil, cheese and footwear.
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@compo "They are now more valuable than ever. And we are once again looking at the tourism sector as an opportunity to promote and sell local products." Tourists go home, but not just yet, buy some overpriced marmalade first.
I don’t understand the headline What’s tourism got to do with this?