US Lawmakers Urge Removal of Duties on Moroccan Phosphate Fertilizer

In a letter addressed to the International Trade Commission, more than 80 members of Congress are asking for the cancellation of duties on Moroccan phosphate, reports DTN.com. "With limited fertilizer supply in the United States, I urge the administration to remove or suspend countervailing duties on fertilizer products from major suppliers," said Senator Jerry Moran. For the latter, this solution would increase the availability of fertilizer products. Lawmakers are also calling on the Commission to end the possibility of import tariffs on certain fertilizers whose price has more than doubled in the past two years.

A year ago, the International Trade Commission voted 4 to 1 to impose 20% import duties on phosphate fertilizers from the Moroccan group OCP, as well as duties on phosphorus imports from Russia. The tariffs came after a 2020 petition estimating that Morocco and Russia were using unfair subsidies to sell phosphorus on the world market. In 2019, the United States had imported about 2 million metric tons of Moroccan phosphate fertilizers.

The halt of Russian exports could certainly drive up prices. This situation could represent an opportunity for OCP to improve its position in the international market. Morocco’s phosphate reserves are estimated at around 50 billion tons, far ahead of China in second place with 3.2 billion tons, and accounting for more than 70% of the world’s proven reserves.