Yes, but more importantly, olive oil is staple food and Spanish people know the real taste of olive oil.
Part of the problem in the US and other countries is that marketing successfully managed to convince people that the taste of cheap generic oil was the sign of quality and all the potent characteristic of virgin olive oil were undesirable.
Rapeseed oil nowadays start to get sold a bit more. But as rapeseed, not as colza. Any 30 something or older spaniard would never buy colza oil. That's how much that scandal has impacted the industry, and everybody has seen someone with the malformation due to the tainted oil (which may not be the real reason according to this article). That would commercial suicide if your brand was somewhat mixing its oil because of that scandal.
A last point is that Spain is really producing a lot of the stuff and is utterly inept at making a lot of money on it. Contrast that with Italy that buy Spanish oil and sell it at a premium just by labelling it "Italian Olive Oil". Actually that's another aspect of the US problem with oil. "Italian Olive Oil" is an extremely powerful label, one that, conveniently, has little legal meaning.