Brazil May Impose a 15% Tariff on Ammonium Nitrate Imports

The Brazilian chemical industry lobbying group, Abiquim, has proposed a tariff on ammonium nitrate imports, requesting to raise the tax on ammonium nitrate from zero to 15%. The organization's president, Andre Cordeiro, also proposed an average tariff of 11% on more than 60 other imported chemicals.

Abiquim's request is still awaiting review by the Ministry of Development and Trade. The request highlights the broader impact of Western sanctions on Russia, with the group stating that Western sanctions on Russia ultimately support Asian exporters by providing cheap natural gas, which is used as both a raw material and fuel to manufacture fertilizers.

Critics of the ammonium nitrate tax (also used in explosives) argue that the tariff will affect about 90% of domestic consumption, as Brazil essentially relies on import supplies.

Trade data shows that the country imported 1.1 million tons of ammonium nitrate last year, 84% of which came from Russia. According to data from the São Paulo Fertilizer Group (Siacesp), as of May this year, the country's import volume was 629,497 tons, while the national production was 64,143 tons.

In an interview, Andre Cordeiro stated that at a time when the domestic chemical industry's utilization rate has fallen to its lowest level in 30 years (averaging 64%), the temporary tariff will provide a fair competitive environment for imported products.