The latest interruptions of Russian gas flows to Europe have reignited debates on fertiliser import tariffs, but farmers and industry remain divided over whether tariff suspensions should include all mineral fertilisers.
According to data from the industry association Fertilizers Europe, Russia and Belarus provide 60% of the EU’s fertiliser, and sanctions introduced in March on imports of potash from Belarus and interruptions to trade with Russia have put significant pressure on fertiliser supply.
In response, the European Commission proposed to suspend tariffs on some inputs used for producing nitrogen fertilisers – namely urea and ammonia – until the end of 2024.
But while farmers and the Commission argue that tariffs on inputs used in fertiliser production should be suspended, among other things, to support struggling domestic fertiliser manufacturers, the European fertiliser industry itself does not condone this supposed help.
Indeed, in the face of soaring gas prices, “European fertiliser producers are facing an unprecedented situation,” Jacob Hansen, director of Fertilizers Europe, told EURACTIV.
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However, according to Hansen, lifting tariffs and thereby making imports less costly relative to domestic products is not the best way to remedy the situation – neither for farmers nor fertiliser manufacturers.
