Last week, The U.S. Department of Commerce (DOC) announced it would decrease tariffs placed on phosphate fertilizers imported from Morocco from 19.97% to 2.12%. The decision comes after the agency conducted its first administrative review of the duties, which is performed annually by retroactively examining the price of shipments and other factors.
Morocco's largest phosphate exporter, OCP, had halted shipments after the high duties were announced in 2021.
“American agriculture must have market access to compete globally, and a major impediment like a fertilizer duty only undermines the ability to establish and expand markets,” a coalition of 62 agricultural groups wrote to Commerce Secretary Gina Raimondo last month.
According to OCP's statement, they are "grateful to all those voices representing US farmers who spoke out loudly in opposition to these duties. And we remain eager to resume our role of serving as a reliable, high-quality provider of sustainable phosphate fertilizers that are essential in enabling US farmers to feed their fellow citizens and the wider world."
The issue stems from a decision by the DOC in 2020 that favored a petition by U.S.-based company Mosaic to impose duties on phosphate fertilizers imported from Morocco and Russia. Mosaic claimed that unfairly subsidized foreign companies were flooding the U.S. market with fertilizers and selling the products at extremely low prices.
After the DOC's announced their decision, Mosaic said in a statement that, "We are disappointed by the ruling on Moroccan imports to the U.S. and we are considering our next steps," said Mosaic CEO Joc O'Rourke. "We at Mosaic expect and welcome fair competition all around the world, and we are confident that Mosaic can compete on a level playing field. We will continue to seek remedies when we see unfair practices."
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