This is a subscriber-only article
The Irish Farmers Association’s (IFA) two-year campaign for lower nitrogen fertiliser prices has moved a step forward. EU Member States have now voted to accept a recent proposal from the European Commission for a cut in import duties on Russian nitrogen. The one-third cut would equate to approximately €12/t on CAN.
The Commission trade section made its proposal in September after reviewing its anti-dumping duties on competitively priced Russian ammonium nitrate, at the request of the IFA.
The duties were costing EU farmers €1bn per annum
This request was backed by the other main farm organisations across the EU. In detailed submissions and arguments, the IFA said that the duties were costing EU farmers €1bn per annum and were no longer needed to protect EU fertiliser manufacturers and were instead damaging the competitiveness of EU agriculture.
Counter lobbying by manufacturers meant that this month’s vote by Member States’ trade officials was carried by just one vote.
Final step
The final step for the proposal will be a vote in coming days by the EU’s College of Commissioners. Commissioners normally accept a proposal brought forward by one of their colleagues.
The decision will then be published in the EU’s Official Journal and take immediate effect.
That is likely to happen early next month.
In recent weeks IFA president Joe Healy argued that a proposed 30% cut would not be sufficient to create meaningful competition in the EU fertiliser market.
The IFA will have an opportunity to push for a further reduction because the EU anti-dumping duties fall due for a periodic review by the Commission in mid-2019.
Fertiliser manufacturers are already lobbying against any further cut in import duties.
SHARING OPTIONS: