Sunset review of antidumping stirs potash market

摘要

A review due to be initiated by the European Union (EU) Commission following the expiry of antidumping measures on potash from the Former Soviet Union (FSU) in May 2005 is causing major concern for the potash industry globally. Since May 2000, potash exported from the FSU to the EU has been subjected to a duty ranging from 19-50 euros/tonne depending on the potash content. Since then, market dynamics have dramatically changed, in part because of EU enlargement and by the granting of market economy status to Russia, making the decision to uphold or withdraw the duties more critical than ever. Either way, a new rule is likely to unsettle the market in Europe and in potash markets around the world supplied from Russia and Belarus. Antidumping duties on potassium chloride (or muriate of potash) have effectively been in place for the past 13 years, in which time they have been modified several times. The first duty was implemented in 1992, the most recent in May 2000. Unfair competition related to price undercutting was cited as the main reason along with chaotic and uncontrolled deliveries of Russian and Belarus product.