Castilla-La Mancha establishes an Observatory to continuously and surgically analyze the impact of tariffs on the regional economy
The Minister of Economy, Companies, and Employment, Patricia Franco, has announced President García-Page’s commitment to the creation of this body, which will integrate, under the leadership of the IPEX and the Ministry of Agriculture, the affected sectors. They have also decided to increase the budget of the IPEX to propose new initiatives that provide concrete responses to ensure the smooth operation of the regional economy in the international arena.
The Minister of Agriculture, Livestock, and Rural Development, Julián Martínez Lizán, has called for «respect for the vital work of a sector of society such as agriculture, and for sanity to prevail so as not to harm an important production sector or consumers.»
Toledo, April 8, 2025. The Government of Castilla-La Mancha will launch an Observatory to closely monitor the impact of the tariffs proposed by the United States on the regional economy. This body will meet regularly, composed of associations, entities, and companies from the most affected sectors, and will be led by the Institute for Foreign Promotion (IPEX) of the Ministry of Economy, Companies, and Employment and the Ministry of Agriculture, Livestock, and Rural Development.
The regional president, Emiliano García-Page, met today with representatives from entities and companies in the most affected sectors by the unilateral decision of the United States to impose a 20% tariff on imports from the European Union. Following the meeting, Minister of Economy, Companies, and Employment, Patricia Franco, announced the initial measures adopted by the regional government.
«Firstly, we have agreed to establish an Observatory composed of the sectors most affected by the US tariffs to closely monitor the impact of these measures on the region’s exports,» stated Patricia Franco. She noted that currently, «891 companies have exported to the United States over the past year, with 292 of them being regular exporters to the US market from the region for four consecutive years.»
These are not the only measures announced by the minister. She also mentioned the decision of the regional president to increase the budget of the IPEX for this year to propose concrete responses to ensure the smooth operation of the regional economy internationally.
These decisions address the initial concerns raised by exporting companies in the region through a survey on the impact of tariffs conducted by the IPEX with over 4,000 exporting companies in the region. «Nearly half of those who have responded so far, around 50%, have identified the search for and promotion of new markets as the best alternative to deal with tariffs,» Patricia Franco stated.
The minister also reminded that Castilla-La Mancha will participate in the Internationalization Interterritorial Council Plenary on Thursday, where they hope to share the information gathered by the Spanish government regarding decisions being made within the European Union. «Our trade relations with European partners are essential for our international projection, and tariff decisions are directly impacting many of them.»
Working Together to Overcome This Situation
On the other hand, the Minister of Agriculture, Livestock, and Rural Development, Julián Martínez Lizán, expressed the regional government’s concerns regarding the agri-food sector, not only due to the imposition of tariffs but also due to the potential collateral damage that may affect other sectors and countries.
In this regard, the minister explained that the agri-food sector of Castilla-La Mancha sells 130 million euros worth of food production to the US market, representing a relative importance as 3,658 million euros have been exported from Castilla-La Mancha to other countries.
He emphasized that the sector has been diversifying sales channels to different countries for some time. For example, the wine sector currently exports to over 147 countries, although this does not negate the legitimate concerns expressed by the sector.
Julián Martínez Lizán further explained that not all sectors will be impacted in the same way. Regarding Manchego cheese, it is one of the products that may be directly affected, but he expressed confidence that, as in previous instances, the sector will be able to overcome this impact.
Another product analyzed by the minister is olive oil. He noted that the US produces very little oil relative to its consumption, importing 98% of its total consumption, which currently amounts to around 350,000 tons.
«Therefore, they cannot afford to drastically reduce their consumption levels, and we must be cautious when offering a product that, due to the recent drop in national prices, could mitigate the negative consequences of these tariffs,» he pointed out.
In any case, the minister expressed concern but emphasized the need for «more prudence than concern in the sense that we must all work together because only united can we overcome this potentially changing situation.»
In this regard, Julián Martínez Lizán highlighted the importance of the message conveyed today after the meeting, which takes into account the sensitivity of all affected parties. «We have a clear message to start working on the dynamics of the autonomous community, which we will convey to the Ministry, but above all to the European Union, which truly has the negotiation capacity.»
The minister strongly urged that the agri-food sectors be kept out of trade wars, stating, «We are dealing with food, and these issues will only affect the most vulnerable classes, who will end up paying high prices for products that should not be part of these commercial actions.»
Finally, he underscored the importance of the negotiations carried out by the European Union to be firm yet respectful in the exchange of relations with agri-food productions, a sector that works outdoors and suffers the climatic and commercial rigors. «Therefore, our message is clear: the vital work of a segment of society such as the agricultural sector must be respected, and sanity must prevail to avoid harming an important production sector or consumers.»
Present at the meeting, in addition to both ministers, were the Second Vice President of the Junta, José Manuel Caballero, and the spokesperson, Esther Padilla. Representatives from social organizations CECAM, CCOO, and UGT, the Regional Chamber of Commerce Council, the Family Business Association, footwear companies from Almansa and Fuensalida, Agri-food Cooperatives, Asaja, and UPA, the Manchego Cheese Designation of Origin and the La Mancha Wine Cellar, as well as representatives from FEVIN, Vinos CLM, Centroliva, Quesos García Baquero, ARCOS, and Joma were also present.