EU suspends fertilizer tariffs to help farmers save on input costs

The European Commission has suspended all import tariffs on fertilizer for one year to help farmers cut their escalating input costs.

The move will mean savings of around €60 million on key nitrogen-based fertilizers used in agricultural production in the EU, including urea and ammonia.

The EU has decided that the suspension will not apply to products imported from Russia due to its unprovoked and unjustified war of aggression against Ukraine.

Nor will it apply to products imported from Belarus given its support for Russia, and its disregard for international law, fundamental freedoms and human rights.

This will also reduce the EU’s dependency on Russia and Belarus for fertilizer products and help build a more diversified trading network in this area.

Makis Keravnos, Minister of Finance of the Republic of Cyprus, said, “This decision gives European farmers better access to affordable, reliable fertiliszer supplies, good news for the agriculture sector and EU consumers alike.

“At the same time, we are accelerating away from Russian and Belarusian products and building more resilient supply chains and partnerships globally.”

MOST FAVORED NATION

In practice, the suspension will apply only to products not already imported into the EU duty-free from countries that have preferential access under most favored nation (MFN) tariffs.

However, to balance the interests of EU producers, the measure is limited to a quota of goods equal to the volume of MFN imports in 2024 plus 20% of the volumes imported from Russia and Belarus in the same year.

Fertilizers are essential for European farmers who need a secure and regular trade flow at competitive prices to guarantee agricultural production and food security.

Prices of those products have increased substantially since 2021, in turn increasing the price of food and putting the agricultural production under pressure.

In 2024, the EU imported 2 million tonnes of ammonia and 5.9 million tonnes of urea, notably to produce nitrogen fertilizers. In addition, the Union imported 6.7 million tonnes of nitrogen-based fertilizers and mixtures containing nitrogen.

The EU already imports a significant portion of nitrogen-based fertilizers duty-free from countries benefitting from preferential access to the Union market.

Despite this, the Union still imports a large volume of these goods originating in countries subject to the common customs tariff, with customs duty rates currently ranging between 5.5% and 6.5%.