Criticism of reduced anti-dumping duty on fertiliser despite 'structural dumping'

Margaret Donnelly

Margaret Donnelly

The European Commission's move to reduce the anti-dumping duty on ammonium nitrate from €47/Mt to €32/Mt has been criticised by one industry body.

Fertilizers Europe said it is concerned that despite recognising Russian ammonium nitrate industry as a considerable injurious threat for EU nitrogen industry, the Commission decided to reduce the anti-dumping duty on ammonium nitrate from €47/Mt to €32/Mt.

While it welcomes the European Commission’s central finding in the interim dumping review that there are no changed circumstances on the Russian gas market where state fixed pricing dominates gas price formation.

It says that the European mineral fertilizer industry is very concerned that the Commission, having recognised this profound structural problem which results in ‘structural dumping’, does not apply a consistent logic that there is thereby persistent ‘structural injury’ in the interim injury review made by EU based farming organisations.

Jacob Hansen, Director General of Fertilizers Europe commented: “As an industry, we are very concerned with the Commission’s decision to reduce by one third the anti-dumping duty on ammonium nitrate originating from Russia despite recognising structural dumping, as it sets a very dangerous precedent which puts at risk high-skilled jobs and competitiveness of European fertilizer industry as a whole.”

The Russian ammonium nitrate industry still represents a considerable injurious threat as it maintains a spare export capability of over 1.2m tonnes per annum, he said.

"Moreover, the Russian industry remains a powerful export industry with exports reaching over 3.5m tonnes per annum in 2017. In comparison, the EU ammonium nitrate market is estimated between 6.4–7.5m tonnes annually."

No amount of EU industry re-structuring or improved efficiencies can compensate for the massive “gas gap” between Russia’s typical state fixed price of US$2.5 MMBTU against the EU’s wholesale gas price of nearly US$10.00 MMBTU, he said.

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"The EU industry will be closely monitoring and assessing both the immediate and long-term impact of the EU’s reduction of the anti-dumping duty on ammonium nitrate from €47/Mt to 32/Mt.

"It cannot be ruled out that the EU industry will ask for an interim review to make for an increased anti-dumping duty."

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