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Rabat – Morocco’s fertilizer giant OCP has responded to the decision of the US Department of Commerce (DOC) to increase tariffs on Moroccan fertilizers.
In a statement last week, the Moroccan fertilizer giant described the DOC decision as a “flawed” act based on “inadequate methodologies.”
OCP added that the decision also contradicts US law, noting that there is no justification for the tariffs.
“We will continue our ongoing appeals against these tariffs in the U.S. Court of International Trade, and we are considering whether to initiate an appeal of this latest DOC decision,” OCP said in its statement on November 7.
In the statement, the group recalled that DOC relate announced its decision as part of the final results of the second administrative review of countervailing duty (CVD) order on phosphate fertilizers from Morocco.
In the results, the DOC increased the tariff rate for Moroccan fertilizers exported to the US from a preliminary rate of 14.21% to 16.81 %.
OCP explained that the new rate applies retroactively as the final rate for OCP’s 222 imports into the US.
The measure is also the new rate for cash deposits that US importers need to pay to the US customs at the time of importation from now until at least 2026. OCP said this measure could extend to later.
OCP argued that there is no justification for any CVD tariffs on its US fertilizer imports, adding that it will continue its full and transparent cooperation with US agencies.
Highlighting its commitment towards international cooperation, OCP said US farmers need “additional reliable, high quality providers of sustainable phosphate fertilizers.”
The DOC decision contradicts its last year’s review, when the department reduced the overall tariff rate on OCP fertilizers.
The outcome of last year’s review saw the overall tariff rate dropping from 19.97% to a significantly lower 2.12%.
OCP has been the target of lobbying by US fertilizer giant Mosaic in recent years.
In 2021, the US company’s lobbying caused a duty hike on the Moroccan group.
In September of this year, however, OCP celebrated Mosaic’s withdrawal of its request to review imposed import duties on Moroccan fertilizer.
The group said in a statement that it took note of Mosaic’s decision, prompting hopes that the US could lift its burdensome import of CVD tariffs.
The US company has requested a review of the CVD twice before.
OCP is a major global power in the fertilizer sector.
With a revenue of MAD 43.2 billion ($4.35 billion) as of June this year, OCP has been demonstrating its commitment to the world’s food security, particularly in Africa.
The good performance is attributed to strong demand in importing regions like Europe and Africa.
