THE RISKS OF FERTILIZER DEPENDENCE FOR THE EU.

On March 14, the EU Council approved its position, supporting the Commission's proposed regulation to impose tariffs on a range of agricultural products and fertilizers from Russia and Belarus. The European Parliament is currently debating the proposal and, after adopting its position, will negotiate with the Council to agree on a common text.

With this proposal, the Commission aims to reduce the growing dependence on Russia and boost European fertilizer production to achieve a stable and guaranteed supply of quality products. The objectives of these measures are:

-Strengthen Europe's strategic autonomy in fertilizers and food.

-Eliminate Russia's ability to manipulate prices in the European market.

-Reduce Russia's financial resources, limiting its ability to sustain the war in Ukraine.

-Ensure that imported fertilizers meet high European standards, promoting more sustainable practices and reducing environmental impact.

The introduction of tariffs is expected to have a marginal impact on prices and no impact on fertilizer availability, as sufficient fertilizer volumes exist in other regions to replace Russian imports and ensure supply in Europe. Furthermore, European producers are expected to increase supply by resuming their currently idle production, which is around 30 percent.

In recent years, imports of Russian fertilizers into the EU have been increasing alarmingly, having grown by 75 percent in Spain in 2024 compared to the previous year. These imports have been made at prices clearly below market prices and well below European production costs, benefiting from subsidized gas and much more permissive environmental standards. This aggressive strategy is threatening the viability and future survival of European fertilizer producers, jeopardizing the sustainability of agricultural supply chains and generating long-term structural dependence, which compromises European strategic autonomy and food security.

The National Association of Fertilizer Manufacturers (ANFFE) believes that the tariff measures proposed by the Commission are highly necessary and urgent, as a delay in their implementation would irreversibly jeopardize the fertilizer industry, leading to the closure of several production plants in the EU, with the resulting loss of numerous direct and indirect jobs. Furthermore, given the current circumstances, it is not only essential to prioritize their implementation, but also to implement an even more ambitious approach.