The Latest On U.S. Phosphate Duties
Moroccan Phosphate 110623
Earlier this week, as part of an annual administrative review of countervailing duty orders, the Department of Commerce (DOC) adjusted duties on imported phosphate fertilizers.
Phosphate fertilizer imported from OCP (Morocco) had its duties lowered from 19.97% to 2.12%. The countervailing duty for product from PhosAgro (Russia) increased from 9.19% to 28.50%.
In global phosphate production, China ranks No. 1, followed by the U.S., Morrocco, and Russia.
The DOC administrative review of the duties is performed annually by retroactively examining the price of shipments and other factors.
Josh Linville of StoneX commented the Phosagro rate was expected to increase up to 50+%. The duty rate for Moroccan phosphate was expected to be reduced closer to 15%.
Linville adds this is good news for buyers, however there won’t be a substantial effect for this fall as that “table has been set.”
The American Soybean Association President Daryl Cates, a soybean farmer from Illinois, said in a statement, “The Commerce Department’s determination comes after years of engagement by the American Soybean Association in which the soy industry has voiced opposition to duties imposed on phosphate fertilizer imports. Soybean farmers across the country have made their voice heard: These tariffs on fertilizer have had a direct impact on the bottom line of farmers. We appreciate Commerce’s recognition of this impact and its subsequent lowering of duties, and we will continue to advocate against harmful tariffs.”
The recent action on phosphate fertilizer duties traces back to a DOC decision in 2020, which was the result of a petition by the Mosaic Company to impose duties on phosphate fertilizers imported from Morocco and Russia. In the petition, Mosaic contended unfairly subsidized foreign companies were drastically increasing the supply in the U.S. market and selling them at exceptionally low prices.
“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 in a company statement. "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."
NCGA President Harold Wolle said in a statement, “While the best duty on fertilizers is no duty at all, we are nonetheless thrilled that corn growers bearing the brunt of these tariffs will feel financial relief thanks to this decision.”
Previous Coverage:
The Future of Phosphate Imports And 5 Things For Ag Retailers To Know
