The U.S. International Trade Commission (ITC) has announced a significant initiative to conduct a comprehensive five-year review of countervailing duties (CVDs) imposed on phosphate imports from Morocco and Russia. This decision comes in the wake of a petition filed by the Mosaic Company in 2020, which led to the implementation of these duties in 2021. According to the American Farm Bureau Federation, these tariffs are projected to impose an additional financial burden of approximately $6.9 billion on U.S. farmers from 2021 through 2025. The review is particularly timely, as American farmers are grappling with soaring fertilizer prices, a situation that has garnered increased attention from various members of Congress.
In a notice published in the Federal Register, the ITC stated, "The Commission determined that it should proceed to full reviews in the subject five-year reviews." This critical examination will focus on whether the removal of CVDs on phosphate imports from these two countries would result in ongoing or recurring harm to U.S. manufacturers. The ITC noted that responses from domestic interested parties, as well as those from Morocco and Russia, were sufficiently robust to warrant this in-depth review.
The CVDs, which were introduced in 2021, emerged from allegations by the Mosaic Company that subsidized phosphate production in Morocco and Russia was significantly undermining domestic market prices, driving them below the cost of production. Controversially, the Mosaic Company, alongside J/R Simplot, faced backlash in April for advocating not only the continuation of these duties but also their increase. They argued that maintaining these tariffs is essential for ensuring fair competition within the U.S. market.
In their filings to the Department of Commerce, Mosaic and Simplot proposed raising the CVD rate on Morocco's OCP Group from 16.6% to 20.04%, while suggesting an increase for Russia's Industrial Group Phosphate from 23.7% to 50.61%. Additionally, they recommended that JSC Apatit's rate be adjusted from 18.21% to 41.15%. These proposals have been met with significant resistance from key agricultural organizations and national commodity groups, many of whom have been advocating for the elimination of the CVDs due to the financial strain they place on U.S. farmers.
In a letter dated March 13, several agricultural organizations called on Mosaic and Simplot to retract their CVD petition and withdraw their support for the continuation of these duties, a request that went unheeded. In response to the mounting criticism, four Republican U.S. senators introduced a bill aimed at abolishing these duties, receiving backing from the American Farm Bureau Federation, the National Corn Growers Association, and the American Soybean Association.
Despite the push to bolster and extend phosphate CVDs, Mosaic announced plans in May to significantly cut phosphate production by 50% at its facilities in Faustina, Louisiana, and Bartow, Florida, along with additional reductions at its Brazil operations. The Fertilizer Institute highlights that China and Russia together account for more than 53% of global phosphate production, a primary factor that led the Trump Administration to include phosphate on the U.S. Critical Minerals list in 2025, with the aim of enhancing domestic production capabilities.
As reported by michiganfarmnews.com.
