EU Commission Offers Concessions on Fertilizer Duties to Secure Mercosur Deal

The European Commission announced the removal of import duties on urea and ammonia on January 7, 2026, aiming to gain support for the EU-Mercosur trade agreement. This move addresses agricultural sector concerns, especially from France and Italy, about competition from Mercosur imports.

Insights:
The European Commission announced on January 7, 2026, its decision to remove import duties on certain fertilizers, specifically 6.5% on urea and 5.5% on ammonia . This strategic move aims to secure the necessary support from EU EUEUmember states to authorize the signing of the long-negotiated EU-Mercosur trade agreement. The concessions are seen as a response to concerns from the agricultural sectors in France FRFRand Italy ITIT, which have previously blocked the agreement due to fears of increased competition from cheaper imports, including beef and sugar .
FILE PHOTO: Police officers stand guard beside a fire as farmers protest against the EU-Mercosur free-trade agreement between the European Union and Mercosur countries during a European Union leaders' summit in Brussels, Belgium, December 18, 2025. REUTERS/Yves Herman/File Photo
FILE PHOTO: Police officers stand guard beside a fire as farmers protest against the EU-Mercosur free-trade agreement between the European Union and Mercosur countries during a European Union leaders' summit in Brussels, Belgium, December 18, 2025. REUTERS/Yves Herman/File Photo
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