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 21 mar 2019 18:35 

Provisional EU anti-dumping duties on liquid nitrogen fertilizers imports

On March 21st, the Commission intends to propose provisional anti-dumping duties on imports of liquid nitrogen fertilizers (UAN) originating in Russia, Trinidad and Tobago and the USA. In the eyes of European farmers and Agri-cooperatives’ organisations, the Commission should not underestimate the adverse impact on European farmers and the additional pressure this puts on their already fragile incomes when weighing up possible benefits of imposing anti-dumping duties on fertilizer manufacturers.

The imposition of provisional anti-dumping duties coupled with the compulsory registration of UAN imports from Russia, Trinidad and Tobago and the USA in all Member States as of March 20th suggests that the Commission believes that dumping and injury to the fertilizer manufacturers are taking place. Copa and Cogeca consider that the legal conditions to impose duties in the present case are not met. Any decrease in UAN prices during the investigated period is the result of global price trends. 
According to Copa and Cogeca Secretary General, Pekka Pesonen, “Fertilizers represent by far the largest share of European farmers’ input costs. UAN alone can represent up to 30% of farmers’ operating costs in Europe. Any anti-dumping duties would be directly passed on to farmers and add to these costs. The effects of such measures could result in an explosive cocktail, especially considering the current market conditions which are characterized by low grain prices on the world markets, the aftermath of the severe climatic conditions farmers are dealing with and the decrease in the EU CAP budget.”
Jean-François Isambert, Cereals’ Working Party Chairman for Copa and Cogeca added “Prices of nitrogen fertilizers have already considerably increased in the EU in recent months. According to our calculations, the proposed anti-dumping duties would add about €2 billion to these costs over a five-year period. Let’s be realistic, these additional expenses will never be passed on downstream in the Agri-food chain and once again farmers will have to pay the price if such anti-dumping duties are applied”
In their letter to DG TRADE, Copa and Cogeca urge the Commission to terminate this investigation without the imposition of any anti-dumping duties, reiterating that European farmers rely on access to fertilisers at competitive prices to provide them with a healthy European farming sector which is competitive on a global market.

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