An import duty of 5.5% on ammonia imported into the European Union (EU) from all origins came back into effect on June 17 after a six-month suspension, along with a 6.5% tariff on urea imports. The conclusion of a review by the European Commission on whether to extend the suspension for a further six months is still pending (GM June 9, p. 28).
Certain origins remain exempt from the tariffs, including Trinidad and Tobago, Egypt, and Algeria. Duties on ammonia and urea imports originating from Russia and Belarus remained in effect through the six-month suspension.
The EU on Dec. 16 last year adopted the EU Council Regulation to temporarily suspend import tariffs on ammonia and urea from all origins except Russia and Belarus until June 17, amid concerns about rising fertilizer costs and the effect on food prices (GM Dec. 23, 2022).
The Commission is assessing the impact of the tariff suspension and current market conditions in the EU and globally, but members are divided on whether duties should resume. Fertilizers Europe, the Brussels-based European producers organization, welcomed the news that the tariff suspension was ending.
“It sends a strong signal that the EU leaders recognize the domestic fertilizer industry is vital for Europe’s strategic autonomy on fertilizers and food,” a spokesperson for the organization said in an emailed statement to Green Markets. “Today there is no shortage of fertilizers in Europe. Also, market circumstances show signs of significant normalization with EU gas and fertilizer prices at pre-crisis levels.”
Fertilizers Europe had expressed “regret” at the EU Council’s decision to suspend the tariffs last December. The spokesperson this week said the reimposition of duties “is an important step” to ensuring a competitive business environment, “providing a positive factor and incentive for the European producers to re-start temporarily curtailed production.”