France to seek EU carbon tax suspension for fertilizer

PARIS — France will ask the European Union (EU) to suspend the application of the bloc’s carbon border tax for fertilizers, in view of rising prices due to the Middle East war, Agriculture Minister Annie Genevard said.

Farmers around the world face rising fuel, gas and fertilizer prices due to supply disruptions caused by the month-old US-Israeli war on Iran. Growers in the EU blame the bloc’s carbon tax scheme, introduced in January, for further inflating fertilizer costs.

“On Monday I will be in Brussels to officially ask the (European) Commission to suspend the carbon tax on fertilizers, at least for the duration of this crisis,” Ms. Genevard told reporters during a visit to a farm in western France.

“This is not the time to increase fertilizer prices with the carbon tax.”

The EU’s agriculture ministers will hold a regular meeting on Monday.

The carbon border tax came into force on Jan. 1 and imposes CO2 emission fees on imports of steel, fertilizer and other goods to ensure they do not have an unfair advantage over products made in Europe.

The French government, which has faced regular protests from farmers in the past two years over grievances including red tape and declining farm income, had pushed the European Commission to exempt fertilizer from the carbon tax in January.

The EU has so far declined requests by France and other countries to suspend the levy on fertilizer. Member countries are negotiating an amendment that could allow temporary exemptions, though that process could take months.

European fertilizer producers oppose suspending the levy, arguing it helps protect local production from cheap imports.

France, the EU’s largest agricultural producer, earlier this week announced measures including loans and tax relief for farms struggling with mounting costs.

Ms. Genevard said further measures would be announced by the French government later Friday. — Reuters