EU Sets High Tariffs on Russian and Belarusian Agricultural Products in Response to War
EU imposes tariffs on Russian fertilizers and agricultural products
Looks like the EU is giving Russia some fertilizer freezeouts! The European Union has just announced plans to impose hefty tariffs on a variety of agricultural products, including fertilizers, from Russia and Belarus.
The move comes as a dramatic response to Russia's ongoing invasion of Ukraine . A majority of EU nations have approved this decision at a meeting in Luxembourg, while the European Parliament paved the way earlier. The goals? Make war unprofitable for Russia and independent Europe!
Products such as sugar, vinegar, flour, and animal feed, in addition to nitrogen and urea-based fertilizers, are all on the tariff list. Eventually, agricultural imports from these countries will face customs duties in the EU .
It seems that around 15% of all agricultural imports from Russia may be impacted by these new tariffs. Some experts even speculate the EU could see a surge in imports in 2024 .
The new tariffs on fertilizers will be phased in over a three-year period, starting with a 6.5% levy and additional charges of €40-€45 per tonne in 2025 and 2026 . By 2028, these duties will climb as high as €430-€450 per tonne.
This could pose a problem for the EU, considering that Russia was responsible for supplying a quarter of the fertilizers affected by these new tariffs, valued at €1.28 billion in 2023 . With Russia holding market power, it's anybody's guess what the region's next move might be.
Q&A
- What agricultural products are the EU proposing to tax from Russia and Belarus? Sugar, vinegar, flour, animal feed, nitrogen and urea-based fertilizers, and other agricultural products.
- What is the expected percentage increase in tariffs for other agricultural goods in the EU, not already subject to extra duties? 50% increase.
- When do the fertilizer tariffs start? July 1, 2025.
- What factors motivated the EU to impose these new tariffs? To protect its farmers, reduce EU reliance on Russia, decrease Russian export revenues, and hinder Russia's funding of the war in Ukraine.
Sources:- ntv.de- lar/dpa
Keywords:- Russia- EU- Tariffs- Agricultural raw materials- Trade
Insights
- The EU has approved comprehensive tariffs on agricultural products from Russia and Belarus, targeting fertilizers, sugar, vinegar, flour, animal feed, and other goods.
- The tariffs aim to reduce Russian revenues, decrease EU dependence on these countries and protect European farmers.
- Fertilizer tariffs will start in July 2025, with a 6.5% levy and additional charges of €40-€45 per tonne for the 2025-2026 period.
- The tariffs are expected to significantly reduce EU imports of the affected goods and stimulate trade diversification.
- Russia's reliance on the EU as a market for fertilizers is likely to be affected by these new duties, potentially limiting its ability to fund the war in Ukraine.
The EU's employment policy, as well as its community policy, may be impacted by the high tariffs imposed on Russian and Belarusian agricultural products. This might lead to a shift in the industry's finance sector, affecting both exports and imports within the EU. Such changes could potentially influence general-news discussions about politics and international trade relations.
Furthermore, the proposed employment policy decisions within the EU might need to address potential job losses or new opportunities in sectors such as agriculture, fertilizer production, and trade, due to the intense competition emerging from the tariffs against Russia and Belarus.
