With a vote held on Thursday, the deputies accepted measures that goal to scale back EU dependence on fertilizers and agricultural merchandise from Russia and his ally Belarus, concurrently reducing the monetary help for the Moscow battle in Ukraine.
By really importing on 1 July, the brand new charges have an effect on some nitrogen -based fertilizers, growing duties from 6.5% to the degrees that strategy 100% for a interval of three years, successfully stopping many of the imports.
Russia at the moment gives 25% of EU nitrogen fertilizers, equal to about 1.3 billion euros per 12 months. Further duties will even be imposed on agricultural imports similar to meat, dairy merchandise, fruit and greens from Russia and Belarus, which characterize about 380 million euros of annual commerce.
The initiative has gained impetus following a chronic strain by a number of Member States and leaders of the fertilizer sector, who’ve supported speedy motion to help EU’s strategic independence.
Ethical and strategic issues
In addition to the financial issues, the will increase in charges additionally goal to face moral issues. Russia imposes an export tax of 23.5% on key mineral fertilizers, the income from which it helps to finance its army actions in Ukraine.
“We should cease financing Russia’s battle in Ukraine with our monetary assets. If the agricultural sector continues to pay for Russian fertilizers, that the cash immediately helps the Russian finances,” mentioned the Latvian deputy set up, the speaker of Parliament on the file
He warned in opposition to rising EU dependence on the Russian fertilizers and the dangers of sudden interruptions of the supply, which might jeopardize agricultural stability.
The European fertilizer business has welcomed Parliament’s determination, describing it as a elementary step to scale back dependence and strengthen the financial security of Europe.
“We ask all of the EU establishments to behave shortly to finalize and implement these charges,” mentioned Leo Alders, president of FertilizeScersee. “First we implement these measures, higher we are able to shield our chains of worth, jobs and meals security.”
Farmers warn the rise in prices
While the EU advances with its technique to scale back strategic addictions and train financial strain on Russia, the problem stays to stability the geopolitical goals with the speedy issues of its agricultural group.
European farmers expressed deep concern concerning the impression of charges on agricultural competitiveness, enter prices and meals security.
Cédric Benoist, of the FNSEA of French farmers, warned of the “inflation of the costs of fertilizers throughout the European Union”, which might have additional efforted the farmers who function in a aggressive market globally.
“We are already listening to the implications when it comes to agricultural earnings,” he mentioned. “Costs are growing, however we can’t transmit them to shoppers.”
Benoist noticed that the worth of the nitrogen resolution, a kind of liquid fertilizer, elevated from € 160 per ton 5 years in the past to € 300 per ton at the moment, after having reached the height at € 600-700 through the Covid-19 pandemic.
He additionally warned that the uncertainty earlier than the deadline of July is distorting the market: “The fertilizer producers are holding the supply, ready for the charges to enter. They are the even greater driving costs”.
He additionally warned that the uncertainty earlier than the deadline of July is distorting the market: “The fertilizer producers are holding the supply, ready for the charges to enter. They are the even greater driving costs”.
