In fact, the abolition of tariffs and can not completely cure the domestic situation
One reason: the elimination of tariffs, import traders lower prices
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The main exports of domestic fertilizer for urea and diammonium phosphate, based on the very capacity surplus in the background, the domestic fertilizer prices again and again forced to make concessions on price, with diammonium phosphate as an example, now 64% Chinese intention in the $305 FOB diammonium / ton, equivalent to Hong Kong price of 1880 yuan / ton, assuming that China cancelled tariffs to Hong Kong price 1980 yuan / ton, still lower than the average cost of domestic and foreign will further diammonium, lower prices, according to the Convention, China was forced to accept a higher likelihood of lower prices, gradually eroded, return to 1880 yuan / ton times is possible.
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