14-Jul-2011 | 17:19 IST | Edited by: Vishal Bagaria

A cut of import duties on potash from Russia and Belarus was declared by the European Union, bringing to a conclusion almost 20 years of trade barriers against the imported fertiliser and prompting praise from British farmers.

Import duties of about 27.5% was slashed off on potash exports by Russia's Silvinit and Uralkali . It is a victory won by EU farmers who protested against rising prices of the fertiliser, hence rising input costs of agriculture.

Potash exporters in the EU, namely, German minerals firm K+S and the Spanish and British branches of Israel Chemicals (ICL), had appealed for an extension till at least 2016 to counter illegal export pricing by producers in Russia and Belarus. It is on grounds that slashing off import duties shall benefit EU agriculture, by sourcing inputs at most competitive prices.

Despite the standard import duties being in place, the profits of EU potash producers' had been large enough to allow the decision not to extend protective duties.

Due to the present strong state of the market, the potash producers comprising the European Potash Producers Association (APEP) are under the assumption that the impacts on operating business will be moderate.

The APEP is, however, reserving the right to once again submit an application for the reintroduction of trade policy measures for the protection of competition-distorting practices to the European Commission if the market situation changes.

External Links:

EU Agricultural and Rural Development Department - Official Website

Taxation and Customs Union - European Union - Official Website

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