This is a subscriber-only article
The European Commission has announced that due to a sharp increase in maize prices, duties on imported maize into the EU will be removed.
A tariff of €5.27/t was first applied on 27 April due to sustained low prices. In early May the Commission increased the tariff to €10.40/t. The EU also applied tariffs to sorghum and rye which have also had their tariffs removed.
The EU bases its tariff on the difference between a European reference price and the world benchmark for maize – the US price, calculated as cif maize price (i.e. cost, insurance and freight included) at the port of Rotterdam.
Prices
A statement from the Commission reads: “At first an increase of the import duties was due to the drop in US cif maize price, mainly as a result of the collapse of bioethanol demand in the US. Later on, with the situation starting to recover, the US maize price started increasing again, triggering a first reduction of import tariffs, and has continued steadily increasing since then.
“In parallel, a lower maize harvest in the US is now expected in 2020/21, pushing further up maize prices.”
The significantly increased prices on the world market for maize now means the EU will no longer apply an import tariff.
SHARING OPTIONS: