Argentine Minister of the Economy Luis Caputo posted on social media that the country will eliminate existing tariffs on urea and UAN of 5.4% and 3.6%, respectively.
Argentina’s main urea supplier is Egypt, with which it enjoys a duty-free agreement. Algeria and Nigeria also supply urea to the country. Should tariffs be removed, Egyptian product will likely face more competition from alternate sources that are currently subject to tariffs.
The minister added that elimination of tariffs would bolster competition in the agricultural sector, and he noted a sharp reduction in the prices of inputs, which he attributed to the improving state of the economy. No timeline for the elimination of urea and UAN tariffs was made public.
Argentina has one domestic urea producer, Profertil, which is owned by Nutrien Ltd. and the state-owned energy company YPF SA.