The European Union (EU) has suspended customs duties on essential nitrogen-based fertilisers for one year in a move aimed at reducing cost pressures on farmers and stabilising agricultural supply chains amid ongoing global disruptions. Approved by the European Council, the temporary measure removes standard import tariffs ranging from 5.5% to 6.5% on critical fertiliser products such as urea and ammonia. According to the European Commission, the suspension is expected to save importers nearly €60 million (US$69.8 million) in customs duties. The decision forms part of the EU’s broader strategy to strengthen food security and diversify fertiliser sourcing across the region.
Reducing Dependence on Russia and Belarus
The European Council stated that the tariff waiver would help reduce the bloc’s reliance on fertiliser imports from Russia and Belarus while encouraging a more diversified and resilient trading network. “It will also reduce the EU’s dependency on Russia and Belarus for fertiliser products and help build a more diversified trading network in this area,” the Council noted in its official statement issued on 22 May. However, the EU has clearly excluded fertiliser imports originating from Russia and Belarus from the duty suspension due to geopolitical concerns linked to the Ukraine conflict.
“The EU has decided that the suspension will not apply to products imported from Russia due to its unprovoked and unjustified war of aggression against Ukraine,” the Council said. It further added that the exemption would also not apply to Belarus because of its support for Russia and its disregard for international law and human rights.
Tariff Relief Linked to Import Volume Caps
To protect domestic fertiliser manufacturers while supporting agricultural imports, the EU has introduced volume-based quotas under the tariff suspension framework. The relief will apply only to products that are not already entering the EU duty-free under Most-Favoured-Nation (MFN) arrangements. In addition, the suspension will remain limited to import volumes equivalent to the EU’s MFN fertiliser imports in 2024, plus 20% of the quantities previously imported from Russia and Belarus during the same period. The tariff waiver will officially come into force the day after its publication in the EU’s Official Journal. Meanwhile, the European Commission will continue monitoring market conditions and may extend or revise the measure if necessary.
Global Supply Disruptions Push Fertiliser Prices Higher
The EU’s decision comes at a time when global fertiliser markets are facing severe supply chain disruptions triggered by escalating tensions in the Middle East and the near-total closure of the Strait of Hormuz. The critical maritime route handles nearly one-third of global fertiliser trade, making the disruption a major concern for agricultural markets worldwide. As shipping constraints intensify, international fertiliser prices have surged significantly.
EU Launches Fertilizer Action Plan to Protect Food Security
The tariff suspension follows the European Commission’s adoption of the Fertilizer Action Plan on 19 May. The initiative aims to shield Europe’s food system from geopolitical risks, volatile fertiliser markets and future supply disruptions. As part of the action plan, the Commission has introduced liquidity support measures for farmers, including enhanced agricultural reserve mechanisms and more flexible cash-flow provisions under the Common Agricultural Policy (CAP). As reported by msn.com, the EU plans to reduce its long-term dependence on imported agricultural inputs by expanding domestic fertiliser production, accelerating the adoption of sustainable fertiliser alternatives and launching the EU Fertilizers Value Chain Partnership to improve supply chain transparency and resilience.
