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Join on Telegram Rabat – US fertilizer giant Mosaic has decided to withdraw its request to review imposed import duties on Moroccan fertilizer, leading to optimism at OCP Group.
This week, OCP Group released a statement announcing the Moroccan phosphate giant has taken notice of Mosaic’s decision, prompting hopes that the US could lift its burdensome import duties, known as Countervailing Duties (CVD).
Mosaic had twice before requested an annual administrative review of the CVD. In the first, the initial CVD rate of 19.97% was reviewed, but the outcome largely upheld the original duties. The second annual administrative review however had better news for OCP, as the CVD rate was reduced from 19.97% to 7.42 percent.
Last year’s review found that the original ruling by the US International Trade Commision (USITC) had overestimated state subsidies to OCP Group, and its reduced CVD rate will have a significant impact on the price of OCP exports to the US, effectively cutting the cost by 12.55%.
The statement further said that Morocco’s largest company hopes “this development will prove to be a first step toward ending these tariffs that are preventing US farmers from having reliable access to a high-quality supply of an essential input for growing abundant and healthy crops to feed their fellow citizens and compete in global markets.”
Three years ago, Mosaic effectively lobbied the USITC, claiming Moroccan imports to the US had benefited from state subsidies in Morocco, claiming this caused “material injury to a US industry.” The industry in question was Mosaic, a Florida-based fertilizer company that has raised much controversy in communities where it mines, leaving behind polluted water and stacks of waste-products.
Since then, the last review reduced the imposed CVD, while OCP Group successfully engaged with the US Court of International Trade, appealing the USITC decision.
The court made several rulings favorable to OCP. In particular, on September 14 and 19, 2023, the court found certain USITC findings to be “factually unsupported,” which were critical to the justification of the CVD.
These decisions compelled the USITC to reconsider its position, potentially leading to a reduction or removal of these duties.
This ongoing legal challenge is crucial for Morocco’s OCP as it seeks to remove unjustified tariffs that hinder its ability to supply US farmers with affordable, essential crop nutrients. OCP aims to ensure a fair trading environment and secure its position in the US market.
