BRUSSELS: The European Union Council has announced a one-year suspension of tariffs on key nitrogen-based fertilizers such as urea and ammonia, aimed at mitigating the impact of the Iran war on EU farmers.
The almost complete closure of the Strait of Hormuz has disrupted about a third of global fertilizer trade, pushing up prices. In April, the UN Food and Agriculture Organization warned that a prolonged blockade could trigger a food and agriculture disaster.
According to a Council statement, the measure is expected to save EU farmers and the fertilizer industry around 60 million euros ($69.6 million) in import duties. The suspension does not apply to fertilizer products imported from Russia or Belarus. The measure will enter into force the day after its publication in the Official Journal of the European Union.
The EU currently imports a large amount of fertilisers duty-free from countries with preferential tariffs, but a significant amount still comes in at a tariff rate of 5.5 to 6.5 percent.
To balance the interests of EU producers, the Council said that the tariff exemptions would be subject to a quota, set at the volume of imports from the most-favoured nation in 2024 plus 20 percent of the volume 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, mostly used for the production of nitrogen-based fertilisers. In addition, the bloc imported 6.7 million tons of nitrogen-based fertilizers and mixtures containing nitrogen.
Translated by Chhouk Bora
