The European Union will temporarily suspend customs duties on key nitrogen-based fertilizers, including urea and ammonia, for one year. The decision was approved by the Council of the EU in response to growing risks to global supplies caused by the war involving Iran and the effective disruption of shipping through the Strait of Hormuz.
Approximately one-third of global fertilizer trade passes through this maritime route, and disruptions to shipping have already triggered a significant rise in global fertilizer prices.
EU officials emphasized that although the bloc is not critically dependent on nitrogen fertilizers from the Middle East, global competition for alternative supplies has driven up prices for virtually all types of fertilizers.
At the same time, the tariff suspension will not apply to products imported from Russia or Belarus. The measure concerns only other suppliers and will be subject to quota limitations.
According to the Council of the EU, the preferential regime will apply within import volumes equivalent to 2024 levels plus an additional 20% of the quantities previously imported from Russia and Belarus.
According to the European Commission, the EU imported around 2 million tonnes of ammonia and 5.9 million tonnes of urea in 2024, while total imports of nitrogen fertilizers and nitrogen-containing mixtures exceeded 6.7 million tonnes.
The EU’s direct dependence on the Middle East remains relatively low — around 3% for ammonia and 1–2% for nitrogen fertilizers. However, global supply disruptions are already affecting the agricultural sector in various regions worldwide.
In Australia, for example, farmers are reducing planting areas due to rising costs, which could lead to a wheat harvest up to 40% smaller. In Asia, rice production is also expected to face risks amid the conflict and the potential development of El Niño conditions.
The UN Food and Agriculture Organization (FAO) previously warned that a prolonged blockage of the Strait of Hormuz could trigger a major agri-food crisis.
Thus, the EU’s decision to temporarily suspend fertilizer tariffs is intended to mitigate the effects of the global fertilizer market shock and support agricultural stability amid growing geopolitical uncertainty.
PigUA.info based on materials from Reuters