US floats fees for Spanish ships, caps on olive oil imports over port dispute

MADRID, Oct 14 (Reuters) - The US Federal Maritime Commission on Wednesday proposed imposing a $200,000 fee on Spanish-flagged ships calling at US ports and restricting Spanish imports including its biggest seller, olive oil.

The commission said that Spain created unfavourable conditions for US shipping by denying access to three US vessels in 2024 that Spanish officials said were carrying cargos related to Israel's war in Gaza.

The proposed measures would also cover imports including cosmetics, oils and ceramics, three of Spain's biggest exports to the US, according to a notice published by the agency on Wednesday.

The measures are not yet in force and are subject to a 60-day public comment period. 

Though the investigation was initiated under former US President Joe Biden, the proposals represent the first concrete plan for trade measures against Spain since US President Donald Trump first threatened to sever trade ties with Spain last year over its spending commitments to NATO and its stance on the Israeli campaign in Gaza and the US-led Iran war.

After investigating reports of restrictive port practices by Spain, the Federal Maritime Commission determined that Spain "has created unfavourable shipping conditions against US-flagged vessels." 

The dispute stems from Spain's refusal to allow three US vessels carrying cargo bound for or from Israel to dock at Spanish ports. Spain said that it was complying with Spanish, European Union and international laws governing defence and dual-use goods.

Spain's government said on Wednesday it was analysing the Federal Maritime Commission's conclusions and the possible implications of the proposed measures, and will "defend its interests and those of its companies, in coordination with the European Commission and the member states."

The government said it remained committed to a strong economic and trade relationship with the US.

(Reporting by Jesús Aguado; Editing by Aislinn Laing and Will Dunham)