EU reduces import tax on corn by 55%

The European Union reported that it reduced a tariff applied on imports of corn by 55%, to 4.65 euros (US$ 5.24) per ton.  The reduced tariff, which came into effect on June 23, also applies to imports of rye and sorghum.  The EU is one of the largest global importers of maize, which is used mainly as animal feed.

The bloc had reinstated an import tax on April 27, after cereal prices in the United States reached a ten-year low and brought the cost of corn imported from the US below the price level set by the EU.  The measure marked the end of a zero-rate period for imported corn by the bloc. After that, the bloc raised its tariff again on May 5, to 10.40 euros – a default initial rate of 5.27 euros.

With this mechanism, the EU is able to adjust tariffs, since the 10-day moving average of import prices is variable, and to remove the rate when the quotations again exceed the established range.

Source: Reuters

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