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The EU Council has agreed to suspend customs tariffs for one year on key nitrogen-based fertilisers used in European agricultural production, including fertiliser inputs such as urea and ammonia.

The measure is intended to reduce costs for EU farmers and the fertiliser industry, with the European Commission estimating savings of around €60 million in import duties.

The move also aims to reduce the EU's reliance on fertiliser products from Russia and Belarus while supporting the development of more diversified supply chains.

Makis Keravnos, minister of finance of the Republic of Cyprus, said: “Today’s decision gives European farmers better access to affordable, reliable fertiliser supplies – good news for the agriculture sector and EU consumers alike. At the same time, we are accelerating away from Russian and Belarusian products and building more resilient supply chains and partnerships globally.”

Under the new measure, the tariff suspension will apply only to products that are not already entering the EU duty-free under preferential trade agreements linked to most favoured nation (MFN) tariffs.

To balance the interests of EU fertiliser producers, the suspension will be limited to a quota equivalent to 2024 MFN import volumes plus 20% of imports from Russia and Belarus during the same year.

The EU confirmed that the suspension will not apply to products imported from Russia, citing the country’s ongoing war against Ukraine, nor to imports from Belarus due to its support for Russia.

The measure will enter into force the day after publication in the EU’s official journal and will remain in place for one year. The Commission said it will monitor developments in the fertiliser market and could propose extending or amending the suspension if necessary.

According to the EU, fertiliser prices have risen sharply since 2021, increasing pressure on agricultural production and food prices across the region. In 2024, the region imported 2 million tonnes of ammonia and 5.9 million tonnes of urea, alongside 6.7 million tonnes of nitrogen-based fertilisers and nitrogen-containing mixtures.

While a large share of nitrogen-based fertilisers already enters the EU duty-free under existing trade arrangements, imports from countries subject to the common customs tariff currently face duties ranging from 5.5% to 6.5%.