EU to suspend key fertiliser tariffs to ease Middle East crisis's impact on farmers
Brussels, May 22
The Council of the European Union announced on Friday a one-year suspension of customs duties on key nitrogen-based fertilisers such as urea and ammonia, aiming to alleviate the impact of the Iran war on EU farmers.
The nearly complete closure of the Strait of Hormuz has disrupted about one-third of global fertiliser trade, driving up prices sharply. In April, the Food and Agriculture Organisation of the United Nations warned that a prolonged blockade could trigger an agrifood catastrophe.
The measure is expected to save EU farmers and the fertiliser industry about 60 million euros (69.6 million US dollars) in import duties, according to the Council's statement, Xinhua news agency reported.
The tariff suspension does not apply to fertiliser products imported from Russia or Belarus. The measure will take effect on the day after its publication in the EU's Official Journal.
Currently, the EU already imports large volumes of fertilisers duty-free from countries with preferential access, but a significant volume still enters with tariff rates ranging from 5.5 to 6.5 per cent.
To balance the interests of EU producers, the Council said the tariff exemption will be subject to a quota, set at the volume of most-favoured-nation imports in 2024 plus 20 per cent of the volumes imported from Russia and Belarus in the same year.
In 2024, the EU imported 2 million tonnes of ammonia and 5.9 million tonnes of urea, mainly used for nitrogen-based fertiliser production. Additionally, the bloc imported 6.7 million tonnes of nitrogen-based fertilisers and mixtures containing nitrogen.
Earlier this week, the European Commission adopted the Fertiliser Action Plan: an initiative to support farmers facing rising fertiliser costs and scarcity, reinforce domestic production and reduce Europe's dependency on imports.
President of the European Commission, Ursula von der Leyen, said: "With this Action Plan, we are investing in a stronger European fertiliser industry, supporting European farmers and accelerating innovation in sustainable, home-grown solutions. The ongoing fossil fuel crisis shows that climate leadership and economic resilience are interlinked. This is why Europe is building a future based on sustainability, affordability and industrial strength."
— IANS
Reader Comments
As an Indian farmer's daughter, I feel for European farmers too! The war in Iran and Strait of Hormuz closure is affecting global fertiliser prices, and Indian farmers are also feeling the pinch. The EU's 60 million euro saving is good, but it's a drop in the ocean when prices have skyrocketed. Hope India also looks at domestic production options like they're doing in Europe. 🌾
Typical EU bureaucracy - suspending tariffs for one year but with complex quotas. And excluding Russia/Belarus while claiming to help farmers? That's just geopolitical posturing. The 60 million euros saving won't mean much when global fertiliser prices have doubled.
The Fertiliser Action Plan sounds promising but the timeline is unclear. Meanwhile, farmers in India are also staring at a fertiliser crisis due to global disruptions. We need similar forward-looking policies here - invest in domestic production and sustainable alternatives, not just tariff suspensions. 👨🌾
Ursula von der Leyen's statement about 'climate leadership and economic resilience' sounds nice, but this is a reactive measure. The EU should have diversified fertiliser sources long ago instead of depending on the Middle East. India needs to learn from this - we can't keep relying on imports for essential farm inputs. :/
The quota system is clever - 2024 MFN imports plus 20% of Russian/Belarus volumes. But let's be honest, this won't solve the underlying problem of supply chain vulnerabilities. The Strait of Hormuz situation and the Iran war have exposed how fragile global fertiliser trade is. Time for serious investment in alternatives. 🧐
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.