Amid an ongoing trade war with Canada, US President Donald Trump has announced that he is working on an agreement to purchase fertilizers from Belarus at a lower price than that offered by the Canadians, CBC reports.
In a social media post, Trump indicated that the US is preparing a major deal to buy fertilizers from Belarus. The price is expected to be significantly lower than the Canadian offer, which is good news for American farmers. Potash fertilizers improve plant disease resistance and increase crop yields.
The US President’s announcement signals a desire to use alternative suppliers as leverage in trade disputes with Canada, which has historically been the largest supplier of potash fertilizers to the US. The decision also marks an improvement in relations with Minsk following the lifting of US sanctions. Dominic LeBlanc, Canada’s Minister of Intergovernmental Affairs (handling Canada-US trade issues), and Nutrien, the world’s largest potash producer, declined to comment.
Belarusian leader Alexander Lukashenko stated on the 11th of September that his country had resumed potash fertilizer sales to the US following the lifting of sanctions. However, he also noted that he wants Washington to return more than 40 million dollars that are “stuck” in the US banking system.
Belarus and Russia produce significant quantities of potash fertilizers,
but sanctions and the halting of transit through the Lithuanian port have complicated deliveries, as shipments to the US must now be routed through ports in the Russian Arctic region. The US continues to receive potash fertilizers from Russia, though the majority of the fertilizer used in the country comes from Canada.
Fertilizer expert Josh Linville expressed doubt that Belarusian fertilizers would play a major role in boosting supplies for US farmers or that prices would drop below current levels. He noted that the impact would be limited, as Americans have ample supplies of potash fertilizer, whereas there are shortages of phosphate and nitrogen fertilizers. Even if Lithuania were to open the port of Klaipėda for transit, the relatively low value of potash does not justify exporting it via the Baltic states and across the Atlantic.
The war in Iran has constrained nitrogen and phosphate supplies, as it is impossible to ship nitrogen fertilizer, natural gas, and sulfur—a key component in phosphate production—out of the Persian Gulf region.
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