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The tariff that Russia has stopped dumping inexpensive fertilizers in the EU market is “too small and too late,” and European producers have warned after recent revenue due to the rise in costs.
Russia, who blocked Pipeline gas to the EU in the wake of Ukraine’s full -fledged invasion, used gas to increase the production and exports of non -sanctions.
“It’s a textbook dumping,” said the fertilizer executive who asked him to name it.
The important fertilizer for global agriculture depends on natural gas as a raw material, and European producers are struggling to compete in high gas prices.
On Tuesday, the European Commission has proposed a gradual increase in tariffs on specific fertilizers from Russia and Belarus in the next three years from the current level of 6.5 %. Currently, the votes voted by the European Congress and the Ministerial Council have been carefully adjusted to avoid upset in France and the Netherlands, where the large -scale agricultural industry is located.
However, this movement did not satisfy the fertilizer company in the region, but many have fallen into serious financial difficulties.
“The EU was dragging his actions,” said Savein Tore Tore Tore Holsther, the highest executive of YARA International, a major nitrogen -based fertilizer based in Norway. The extended step intrusion period will only affect the agricultural season from 2026 and 2027, so you will kick more cans. “
Holsether called on the EU to “increase the level of ambitious”, and said that tariffs would help to levelize competition, but “too few, too late.”
Ahmed EL-HOSHY, the highest executive of Fertiglobe, the United Arab Emirates, is a new, facing European nutritional producers “higher labor costs, higher energy costs, and higher regulations.” Prior to the EU’s proposal, he said that something had. To give. ” He added that tariffs would have a big impact on European landscapes to protect industry.
Meanwhile, the United States said that it had purchased farmers to buy cheaper fertilizer and use the situation to reduce production costs.
Holsether has warned that European producers are “345 % higher than the United States and more compared to Russia” due to natural gas prices in Europe. I warned that there is.
He also stated that the European fertilizer category would not easily recover from the decrease in production.
“These industries are not like a restaurant in COVID, so when the situation changes, it will be closed and then resumed,” says Holsether. “When production is moved to another place and investing in a new facility, they will stay, which is not back.”
The committee stated that the proposed new tariffs would apply to 15 % of Russian agricultural products whose import operations were not yet increased. “Especially such imports of fertilizers vulnerable to Russia’s potential forced actions, and thus the risk of EU’s food security,” he states in a statement.
Under the committee’s proposal, additional tariffs on fertilizer in Russia and Belarus will begin with 13 %, reaching 50 % in the next three years, giving farmers to find alternative sources. This is added to the existing 6.5 % duty.
Leo Alders, President of Trade Fertilizer Europe, has urged Brussels to raise tariffs to a minimum of 30 % and increase it every six months.
“We strongly support the action policy, but the urgency of the current landscape requires more ambitious approaches,” he said.
Additional report by Brussels and Andy Bound
