The European Union has suspended customs duties on key nitrogen-based fertilisers for one year, temporarily lifting standard tariffs that range between 5.5% and 6.5%. The measure covers essential inputs like urea and ammonia, aiming to ease cost pressures for farmers caught in global supply disruptions.
The European Commission estimates the waiver will save importers approximately €60m ($69.8m) in duties. The tariff suspension applies only to products not already entering the EU duty-free under most-favoured-nation provisions, but the relief is capped at the volume of MFN imports in 2024 plus 20% of the volumes imported from Russia and Belarus in that year.
Geopolitical context
The suspension explicitly excludes imports from Russia and Belarus. The EU said the decision reflects Russia's war against Ukraine and Belarus's support for that war, as well as its disregard for international law and fundamental freedoms. The tariff relief comes as the near-total closure of the Strait of Hormuz due to the Iran conflict has disrupted maritime routes that handle roughly one-third of global fertiliser trade, triggering international price spikes.
Supply shocks and food security
In 2024, the EU imported two million tonnes of ammonia, 5.9 million tonnes of urea, and 6.7 million tonnes of nitrogen-based mixtures. On 20 May, the United Nations Food and Agriculture Organization warned the shipping bottleneck is shifting into a "systemic global agri-food crisis", with food price shocks expected within six to 12 months. The FAO Food Price Index rose for a third consecutive month in April, driven by high energy costs and Middle East conflict disruptions.
Broader strategy
The tariff suspension follows the Fertilizer Action Plan adopted by the European Commission on 19 May. The plan aims to insulate European food security from geopolitical crises and volatile market shifts. Over the coming years, the Commission intends to reduce reliance on foreign agricultural inputs by expanding domestic manufacturing, accelerating sustainable fertiliser alternatives, and launching the EU Fertilizers Value Chain Partnership to enforce transparency.