Recently, the European Commission proposed a new plan to suspend import tariffs on ammonia, urea, ammonium sulfate, calcium ammonium nitrate, and most NPK compound fertilizers for one year through a quota system. The quotas will be based on the most-favored-nation import volumes in 2024, with an additional 20% increase based on the 2024 import volumes from Russia and Belarus.

This measure aims to offset the financial pressure resulting from the full implementation of the EU Carbon Border Adjustment Mechanism (CBAM) starting from January 1, 2025. If the proposal is adopted, ammonia suppliers from countries such as the United States, Saudi Arabia, Oman, Qatar, the United Arab Emirates, and Libya will benefit significantly, as their products currently face a 5.5% tariff.

However, products from Russia and Belarus are excluded from the tariff relief. Imports of ammonia and urea from these two countries will continue to face tariffs of 5.5% and 6.5%, respectively. The European Commission stated that the EU is a structural net importer of nitrogen fertilizers globally, with supply highly dependent on a few major trading partners, one of which is Russia.

According to Eurostat data, in 2024, the EU imported 2.08 million tons of ammonia from external sources, with about 35% coming from the United States and Russia. Russia supplied 528,000 tons, accounting for over 25% of total imports. Urea imports amounted to 5.98 million tons, with Russia contributing 1.72 million tons, representing approximately 29%.

The draft does not specify the exact timing of the tariff suspension but provides an overview of the fiscal impact of implementing a one-year suspension starting from May 1, 2026.