EU get thier backs up on tarriffs.....Uralkal... won't have it easy.
posted on
Apr 10, 2011 11:50AM
Cerrado Verde Potash, Apatita Phosphate, Gold, Vanadium, Copper and Zinc
EU potash firms will demand tariff extensions next week * Importers warn of dwindling supplies of fertiliser * Concerns rising about future of European potash mines By Juliane von Reppert-Bismarck and Charlie Dunmore BRUSSELS, April 8 (Reuters) - Potash producers in Spain, Germany and Britain will ask the European Union executive to keep in place trade barriers to limit rival imports from Belarus and Russia, an industry official said on Friday. German minerals firm K+S (SDFG.DE) and the Spanish and British operations of Israel Chemicals (ICL) (ICL.TA) -- represented by a European producers' group -- will say keeping import duties in place on Russian and Belarusian potash rather than letting them expire is essential to protect Europe's remaining producers from unfair export pricing. Soaring global demand for crops to be used for food and biofuel has made potash fertiliser a sought-after commodity and triggered an international scramble for secure supplies. "The European Potash Producers Association is in the last stage of writing the request for an (import duties) extension and will certainly lodge it by next Wednesday," Michael Wudonig, spokesman for K+S, told Reuters. The European Commission must decide whether to accept the request and then has up to 15 months to make a decision on extending the duties, which would otherwise expire in July. The tariffs would remain in force while it considered the matter. Though EU output is dwarfed by mines in Canada, Russia, Brazil and Australia, producers have raised concerns that closing European mines could make the continent dependent on foreign supplies of an essential farm input. A five-year extension would keep in place the duty-free ceiling and tariffs of up to 27.5 percent until at least 2016. EU producers say an extension is crucial to prevent a flood of the fertiliser drowning their own production. IMPORTERS FEAR EU FERTILISER SHORTAGE EU importers campaigning for an end to the duties say there is no prospect of expanding domestic potash production to meet rising demand, and that maintaining the tariffs would increase input costs for farmers. "The availability of imports at a fair price is a big, big concern for the farming industry," said John Scollay, managing director of Fintec, which distributes potash from Belarus.