EU lifts officially the anti-dumping tax imposed on Algerian exports of fertilizers

09/02/2012 12:00 - 458 Views

The European Union (EU) has formally lift the anti-dumping tax imposed on fertilizer exports gas from several countries, including Algeria, APS has learned from sources close the file.

"The notice of expiration of this anti-dumping measure, which took effect from 22 December 2011 was finally releasedlate last December in the official journal of the EU," the source added.

The deletion of this measure decided in 2009, after intense negotiations between Algeria and the EU, has been formalized as the end of 2011, almost three years after the decision of cancellation.

This 13% tax hit that far Algerian exports of fertilizer, had been established by the EU, following a complaint from the European association of producers of fertilizers, which had held that the fertilizer products in some countries came gas cheaper in the European market.

The same association had argued that the price of gas used in the industry, strong consumer of this energy was subsidized, and believing that their production was dumped from countries not members of the European community.

But Algeria has challenged this unilateral action, going against the free trade, by initiating discussions in 2007 to its cancellation.

She had provided for this purpose in the European part of the explanation of the composition of gas prices, which had shown that while the price of this energy well practiced in Algeria covers the costs of exploration, extraction, transportation, storage but also implies an adequate profit margin for reinvestment.

The explanations for the EU show that "there is no support from the State's gas prices, no hidden subsidy from the state to society Fertial", said in 2009, former Trade Minister, Mr El Hashemi Djaaboub.

The measure was penalized several countries including gas, Algeria, Russia, Belarus and Ukraine in the place of impeding their production in this important market. Algeria, through his company Fertial to stop the exports to EU countries, becoming uncompetitive after the measure had been imposed.

Fertial which is a partnership between Algerian society Asmidal (34% of shares) and the Spanish group Villar Mir (66% of shares) can now return to the European market after the lifting of the tax, according to same source.

"The lifting of the official measure will provide vistas for Algeria in providing opportunities for its production, set to increase with the receipt of two projects of ammonia and urea" in the industrial area of Arzew, provides the same source.

Source: algeriatimes.info