The Council of the EU today (Friday, May 22) confirmed it will suspend customs tariffs on key nitrogen-based fertilisers for one year.

The move could see €60 million slashed off import duties on crucial fertiliser inputs including urea and ammonia.

According to the Council of the EU today this will reduce the EU's dependency on Russia and Belarus for fertiliser products and "help build a more diversified trading network in this area".

Makis Keravnos, Minister of Finance of the Republic of Cyprus said: "Today’s decision gives European farmers better access to affordable, reliable fertiliser supplies – good news for the agriculture sector and EU consumers alike.

Fertilisers

According to the EU Council the suspension of customs tariffs will apply only to products not already imported into the EU duty-free from countries that have preferential access under most favoured nation (MFN) tariffs.

But it has also outlined that 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".

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

It will also not apply to products imported from Belarus because it has supported Russia's war in Ukraine.

The tariffs suspension will enter into force the day after its publication in the EU’s official journal and will apply until one year later.

The European Commission will be expected to monitor the fertiliser market and, if necessary, propose the extension or the modification of the suspension.

Prices

According to thte Council of the EU data shows that fertiliser prices have soared since 2021 and the knock on effect of this has squeezed farm profitability and led to an increase in the price of food

In 2024 the EU imported two million tonnes of ammonia and 5.9 million tonnes of urea mainly to produce nitrogen fertilisers.

The European Union also imported 6.7 million tonnes of nitrogen-based fertilisers and mixtures containing nitrogen.

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

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