The measure comes as fertilizer prices have surged worldwide after the near-total closure of the Strait of Hormuz, a critical maritime corridor along Iran’s coast that handles roughly one-third of global fertilizer trade. The disruption has intensified competition for alternative supplies and raised concerns over food production and agricultural costs.

The Council said the temporary tariff suspension would apply to major nitrogen-based fertilizer products but would exclude imports originating from Russia and Belarus.

Although the EU has limited direct dependence on Middle Eastern fertilizer supplies, officials said market-wide price increases have affected fertilizer availability and affordability across the bloc. The move is intended to ease pressure on farmers facing higher production costs during a period of heightened volatility in global agricultural markets.

The Council noted that a significant share of EU fertilizer imports already enters duty-free under preferential trade arrangements. However, substantial volumes continue to face customs duties ranging between 5.5% and 6.5%.

To protect European producers while expanding supply, the tariff waiver will be capped through a quota mechanism. Eligible imports will be limited to the volume of most-favored-nation imports recorded in 2024, plus an additional amount equivalent to 20% of fertilizer volumes imported from Russia and Belarus during the same year, the Council said.

The measures are expected to take effect within days after publication in the EU’s Official Journal.

The decision follows warnings from the United Nations Food and Agriculture Organization that a prolonged disruption of shipping through Hormuz could trigger severe consequences for global food systems by constraining access to fertilizers and raising production costs for farmers.

Early signs of strain are already emerging in agricultural markets. Australia, the world’s third-largest wheat exporter, is planting fewer crops this season amid elevated fertilizer costs, raising the risk of a substantially smaller harvest.

Across parts of Asia, rice production is also expected to decline this year as the conflict compounds weather-related challenges associated with an emerging El Niño pattern.

According to the Council, the EU imported 2 million metric tons of ammonia and 5.9 million metric tons of urea in 2024, alongside 6.7 million metric tons of nitrogen-based fertilizers and nitrogen-containing mixtures.

The European Commission estimates the bloc’s direct reliance on Middle Eastern supplies remains relatively limited, accounting for about 3% of ammonia imports and between 1% and 2% of nitrogen fertilizer imports.

The measure comes as fertilizer prices have surged worldwide after the near-total closure of the Strait of Hormuz, a critical maritime corridor along Iran’s coast that handles roughly one-third of global fertilizer trade. The disruption has intensified competition for alternative supplies and raised concerns over food production and agricultural costs.

The Council said the temporary tariff suspension would apply to major nitrogen-based fertilizer products but would exclude imports originating from Russia and Belarus.

Although the EU has limited direct dependence on Middle Eastern fertilizer supplies, officials said market-wide price increases have affected fertilizer availability and affordability across the bloc. The move is intended to ease pressure on farmers facing higher production costs during a period of heightened volatility in global agricultural markets.

The Council noted that a significant share of EU fertilizer imports already enters duty-free under preferential trade arrangements. However, substantial volumes continue to face customs duties ranging between 5.5% and 6.5%.

To protect European producers while expanding supply, the tariff waiver will be capped through a quota mechanism. Eligible imports will be limited to the volume of most-favored-nation imports recorded in 2024, plus an additional amount equivalent to 20% of fertilizer volumes imported from Russia and Belarus during the same year, the Council said.

The measures are expected to take effect within days after publication in the EU’s Official Journal.
The decision follows warnings from the United Nations Food and Agriculture Organization that a prolonged disruption of shipping through Hormuz could trigger severe consequences for global food systems by constraining access to fertilizers and raising production costs for farmers.

Early signs of strain are already emerging in agricultural markets. Australia, the world’s third-largest wheat exporter, is planting fewer crops this season amid elevated fertilizer costs, raising the risk of a substantially smaller harvest. Across parts of Asia, rice production is also expected to decline this year as the conflict compounds weather-related challenges associated with an emerging El Niño pattern.

According to the Council, the EU imported 2 million metric tons of ammonia and 5.9 million metric tons of urea in 2024, alongside 6.7 million metric tons of nitrogen-based fertilizers and nitrogen-containing mixtures.

The European Commission estimates the bloc’s direct reliance on Middle Eastern supplies remains relatively limited, accounting for about 3% of ammonia imports and between 1% and 2% of nitrogen fertilizer imports.