EU Cranks Up the Heat: Agricultural Tariffs Set on Russia and Belarus Products
A New Turn of Events
EU imposes tariffs on Russian fertilizers and agricultural products
In the unfolding geopolitical chessboard, here comes a significant move! The European Union (EU) has made a landmark decision to impose tariffs on fertilizers and certain food commodities sourced from Russia and Belarus. Following a consensus meeting in Luxembourg, these new duties will make it harder for Moscow to sustain its aggressive war against Ukraine [1][2].
The Lineup of Affected Commodities
The tariff battle includes a varied range of agricultural products. Among the targeted commodities are sugar, vinegar, flour, animal feed, and different types of fertilizers such as nitrogen and urea-based ones [3]. As such, agricultural imports from both nations will now be subject to these additional costs. The EU estimates that roughly 15% of all agricultural imports from Russia will be impacted by these new tariffs starting from 2023 [3].
Staged Tariff increases on Fertilizers
The tariff hike on fertilizers will not be a one-time affair. In fact, the EU countries have planned for the duty increases to occur gradually over a three-year period. For the 2023 financial year, EU imported around 25% of the fertilizers susceptible to these new tariffs from Russia, equating to a whopping 1.28 billion euros [3].
Future Tariff Rates
- Tariffs of 6.5% will initially be levied on the specified products.
- Yearly increases will follow: Beginning from July 2023, fees of between €40-€45 per ton will be due [3].
- By 2028, the duty will escalate to a staggering €315-€430 per ton, depending on the product type [3].
The Lingering Question of Market Power
The EU could potentially face challenges in the near future as Russia might employ this market dominance as leverage. Naturally, the EU aims to minimize this risk [3].
For more insights, keep yourself updated with the latest developments at ntv.de and dpa.
- Russia
- EU
- Tariffs
- Agricultural raw materials
- Trade
- Given the ongoing imposition of tariffs on agricultural products from Russia and Belarus by the European Union (EU), discussions surrounding the community policy, employment policy, and general-news are now highly relevant as the EU addresses concerns about the potential market power Russia may wield in response.
- The escalating tariffs on fertilizers from these nations, affecting various industries such as farming and agriculture, may have significant financial implications for both EU member states and the affected countries, prompting amendments and adaptations in the employment policy to accommodate potential labor market shifts.
