Agriculture

Fertiliser tariffs, EU towards suspension after farmers' alarm

The European Commission proposes a one-year halt to tariffs on nitrogen fertilisers essential for agricultural production. Imports plummeted by 80% so far

by Giorgio dell'Orefice

Adobe Stock

2' min read

Translated by AI
Versione italiana

2' min read

Translated by AI
Versione italiana

The European Commission proposed to suspend Most Favoured Nation (MFN) tariffs on imports of several essential nitrogen fertilisers and inputs for their production (ammonia, urea) for one year.

The tariff suspension will be applied to all countries, except Russia and Belarus (for which there should be a further tariff crackdown as part of the sanctions review), through tariff-free quotas.

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Farmers' alarm over Cbam

This is an initial response from Brussels to the alarm raised by Copa-Cogeca, the umbrella organisation of European farmers' organisations and cooperatives, which reported that fertiliser imports into the EU have plummeted by 80% since the beginning of the year.

A negative exploit linked to high tariffs on imports and the simultaneous entry into force of the Cbam mechanism, which imposes an additional tariff on fertilisers linked to carbon emissions released into the atmosphere in the production process.

For these reasons, EU farmers demanded both a reduction in import tariffs and the suspension of the Cbam mechanism because without fertilisers and alternative solutions, the entire EU agricultural production would be at risk.

An estimated saving of 60 million

Thus came this first response from the Commission with a measure that aims to strengthen the agri-food sector by reducing costs for farmers and the fertiliser industry through an estimated EUR 60 million saving in import tariffs. 

This solution should also favour reduction of EU countries' dependence on Russia and Belarus while supporting diversification in supplies.

In December, Brussels had proposed an exception to the standard calculation rules to reduce the impact of the carbon adjustment mechanism at the border (Cbam on fertilisers), making them the only commodity to benefit from this exception (use of a 1% mark-up instead of 10%, with a progressive increase to 30% for all other sectors). But the proposal has so far remained on the table and has not yet entered the operational phase.

Lollobrigida: Italia's request granted

"The suspension of tariffs on fertiliser imports for one year," commented the Minister of Agriculture and Food Sovereignty, Francesco Lollobrigida, "proposed today by the European Commission, is an achievement of Italia and the government led by Giorgia Meloni. A concrete measure to support the competitiveness of enterprises and allow, according to Brussels' estimates, a saving of about 60 million euro'.

'This is good news,' the minister added, 'in line with Italian demands, which will help reduce the EU's dependence on Moscow and Minsk and strengthen the competitiveness of the European agricultural sector. We will continue to work with determination so that Europe listens more and more to the demands of the agricultural and production world, overcoming ideological choices that have penalised our companies in the past'.

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