U.S. Commerce Department lowers duties on Moroccan phosphate imports

The U.S. Department of Commerce has decided to lower import duties on Moroccan phosphate fertilizers from 19.97% to 2.12%. U.S. farmers hailed the decision saying it will help ease the pressure and decrease fertilizer prices.

The decision, which was announced Thursday, comes after Commerce officials conducted an administrative review on the countervailing duties (CVD) imposed on fertilizer imports from the Moroccan Phosphate OCP group.

U.S. Court of International Trade (CIT) has ruled lately that Commerce Department made errors when it calculated duties levied on Moroccan phosphate imports.

Following the ruling, a bipartisan group of 39 U.S. lawmakers sent a letter to Secretary of Commerce Gina Raimondo saying that the imposition of CVD on Moroccan phosphate fertilizers in 2020 has led to the high volatility of fertilizer prices, increased costs of a critical nutrient, and exposed farmers to the risk of inadequate supply due to the lack of sufficient domestic supply to meet U.S. farmers’ needs.

The National Corn Growers Association and other agricultural groups had been pressing the International Trade Commission, which is part of the Commerce Department, to reverse the 19.97% tariff on phosphate fertilizer from Morocco.

“This victory was made possible by corn growers across the country that spoke out against these duties as they faced skyrocketing fertilizer prices and product shortages at the behest of The Mosaic Company,” said Harold Wolle, president of NCGA.

“While the best duty on fertilizers is no duty at all, we are nonetheless thrilled that corn growers bearing the brunt of these tariffs will feel financial relief thanks to this decision,” he added.