European fertilizer producers are paying close attention as the European Union mulls whether to abolish anti-dumping duties on Russian ammonium nitrate (AN).

The European Commission launched two separate interim reviews on existing AN duties on imports from Russia on August 17, 2017. One – numbered R669 – was requested by Russian AN producer Acron and the other – R674 – came following an application from eight farmers' associations in the EU.

The outcome of the reviews – which is due to be reached by 16 August 2018 – may have a significant impact on AN producers and farmers in the EU. If the tariffs are abolished, European AN producers will have to contend with cheaper Russian imports into the bloc, while conversely farmers could benefit from lower prices.

AN imports from Russia are subject to anti-dumping duties ranging from €23.88/mt to €47.07/mt, according to a document published on the European Commission's trade defence website in August last year.
Background

The first definitive AN anti-dumping measures were imposed in August 1995, following an investigation launched by the Commission in 1994.
Following the subsequent expiry and partial interim reviews of these measures, a definitive anti-dumping duty was maintained on AN imports from Russia in April 2002.

In July 2008, the definitive anti-dumping duty was once again maintained. Still, at this time the Commission accepted a price undertaking offered by Acron. Price undertakings are alternatives to anti-dumping duties, where the exporter raises the export price to a point that satisfies the Commission that the injurious effects of the dumping are mitigated.

In September 2014, the Commission maintained definitive anti-dumping duties once again – still subject to Acron's price undertaking. But in March 2016, the Commission withdrew Acron's undertaking, setting the wheels in motion for the company to apply for an interim review on AN anti-dumping duties in August 2017.