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2026-05-22 20:53:59
[EU Temporarily Cancels Fertilizer Tariffs as Hormuz Crisis Impacts Global Agriculture] ⑴ The European Council announced on Friday that it will temporarily waive tariffs on key nitrogen-based fertilizers such as urea and ammonia for one year to mitigate the ripple effects of the Iran-Iraq War on agriculture. This comes after the near-complete closure of the Strait of Hormuz, through which about one-third of global fertilizer trade passes, causing global fertilizer prices to soar. ⑵ Although the EU does not rely on nitrogen-based fertilizers produced in the Middle East, the scramble for alternative sources has driven up prices for all types of fertilizers. The UN Food and Agriculture Organization warned last month that a prolonged blockade could trigger an agricultural and food catastrophe. The tariff exemption does not apply to fertilizer imports from Russia and Belarus. ⑶ The measure sets quotas: equivalent to the 2024 Most Favored Nation (MFN) import volume plus 20% of imports from Russia and Belarus in the same year. The measure will take effect a few days after its publication in the Official Journal of the European Union. In 2024, the EU imported 2 million tons of ammonia and 5.9 million tons of urea, as well as 6.7 million tons of nitrogen-based fertilizers and nitrogen-containing mixtures. The EU's direct dependence on Middle Eastern ammonia is approximately 3%, and on nitrogen fertilizer, it's about 1% to 2%. (4) Agricultural pressures are already emerging. Australian farmers have reduced planted area this year, and their harvest may plummet by 40%. Asian rice supplies are also expected to decline due to the Iran war and El Niño.
