August 13, 2020

 

EU reinstates tariff for maize imports

 


The European Union has brought back a maize import tariff at EUR 5.48 (US$6.42; EUR 1 = US$1.18) per tonne, Reuters reported.

 

The import duty will be effective from 12 August. It also applies to imports of rye and sorghum into the bloc.

 

In late April, the EU imposed an import duty on maize after US prices dropped to its lowest in 10 years because of COVID-19. No tariffs were imposed previously.

 

The tariff was increased to EUR 10.40 (US$12.30), before steadily reducing it to zero as maize prices recovered.

 

However, US maize and ocean freight prices have declined recently, with imported US goods costs dropping lower than a regulatory price floor for the last 10 days.

 

The EU may adjust the tariff following a 10-day rolling average of import prices, with the tariff removed after prices increase above the regulatory price floor.

 

-      Reuters