In its dispute with Mosaic, OCP continues to believe that there is no justification for imposing tariffs on our imports of U.S. fertilizers, especially since U.S. production of these essential nutrients is far from sufficient to meet demand.
After several years of litigation with a U.S. company, OCP Group recently announced that Florida-based Mosaic has withdrawn its request for a third annual administrative review of countervailing duties (CVD) on imports of Moroccan phosphate fertilizers into the United States. This decision was communicated to the U.S. Department of Commerce on September 10, 2023, and the Department is expected to formally rescind this review in the near future, according to an OCP statement released earlier this week.
OCP is currently evaluating the potential implications of this development on the final CVD rates, which were initially set at 19.95% but have been provisionally reduced to 7.42%. Final rates for 2023 and beyond will depend on future administrative reviews as well as ongoing legal challenges before the U.S. Court of International Trade.
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In the filing, OCP hopes that this step will lead to the removal of tariffs, which would benefit U.S. farmers who rely on the company’s fertilizers to maintain healthy crops. The company says there is no justification for CVD tariffs, noting that U.S. fertilizer production is insufficient to meet domestic demand.
However, the group remains committed to appealing the tariffs and aims to restore its role as a trusted supplier of fertilizers to the U.S. market when conditions improve.
As a reminder, the conflict between the OCP Group and The Mosaic Company concerns the countervailing duties (CVD) imposed by the United States on imports of Moroccan phosphate fertilizers.
In June 2020, Mosaic filed a complaint with the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC), alleging unfair competition from foreign producers of phosphate fertilizers. As a result of this complaint, countervailing duties of 19.95% were imposed on imports of Moroccan phosphate fertilizers. These tariffs have been provisionally reduced to 7.42% pending the outcome of appeals pending before the U.S. Court of International Trade.
On September 10, 2023, Mosaic notified DOC that it was withdrawing its request for a third annual administrative review of the CVDs. OCP hopes that this decision will lead to the removal of the tariffs, thereby providing U.S. farmers with access to high-quality fertilizers.
