Obstacles to trade in fertilizer products

The expansion of fertilizer production capacity by the developing countries requires large-scale integrated production facilities which depend on exports and liberal access to the markets of developed countries. In this connection the level and the structure of tariffs at all stages of production are crucial. The positive effects of the generalized system of preferences (GSP) can be nullified through the application of various limitations, such as country specific tariff quotas, ceilings, maximum country amounts, competitive need criteria, denial of beneficiary status, etc. Besides, different non-tariff measures can be imposed on fertilizer products exported by the developing countries, such as licensing measures, technical standard quotas, anti-dumping duties and marking and packaging requirements. Market-economy countries producers exert high degree of market power in international markets, they also own a large number of process patents as well as non-patented know-how that makes it difficult for the developing country producers. Industry associations in developed countries have a decisive influence on regulating trade in fertilizers. Other factors which can have important trade effects include, transportation, marketing, finance, choice and availability of appropriate technology and discriminatory industrial collaboration arrangements.