Full Review of Countervailing Duties on Moroccan Fertilizer
The US International Trade Commission is set to undertake a comprehensive five-year review of the countervailing duties imposed on phosphate fertilizer imports from Morocco and Russia. This decision was formally announced through a notice in the Federal Register. The commission indicated that the responses received from American producers, along with representatives of Moroccan and Russian exporters, were substantial enough to warrant a thorough review process, rather than expedited proceedings based solely on pre-existing information.
During this review, the commission will assess whether lifting the duties could potentially lead to a continuation or recurrence of significant harm to the US phosphate fertilizer sector. These duties have been in effect since April 2021, following trade investigations initiated by petitions from US fertilizer producers such as Mosaic and J.R. Simplot. The imposition of these duties has sparked a growing outcry from American agricultural groups who argue that these tariffs limit supply options and inflate costs at a critical time when farmers are already grappling with low crop prices and high agricultural expenses.
Impact on US Corn Farmers and Call for Action
Jed Bower, the president of the National Corn Growers Association, emphasized that corn farmers intend to engage actively in the review process. He highlighted that the continuation of the duties could adversely affect growers and the broader US economy. The association has raised alarms about soaring fertilizer prices contributing to a troubling prognosis for many corn farmers, who could face losses for the fourth consecutive year. Additionally, ongoing market volatility is complicating preparations for the upcoming 2027 growing season.
In a significant show of unity, 65 national and state agricultural organizations recently urged US Commerce Secretary Howard Lutnick to reconsider and eliminate the duties on Moroccan phosphate fertilizer. The American Farm Bureau Federation also appealed to President Donald Trump in March to utilize his executive powers to temporarily suspend these countervailing duties, especially as disruptions in the Middle East were posing risks to fertilizer supply chains. This review follows discussions held by the Trump administration with Moroccan officials regarding fertilizer supplies, which were characterized as an "insurance policy" against potential disruptions affecting US farmers.
As reported by en.hespress.com.
