Morocco’s OCP Considers Halting Fertilizer Exports to US Amid Subsidy Dispute

This trade war between the Office Chérifien des Phosphates (OCP) and the United States risks costing the two parties dearly. Under the threat of US authorities to impose countervailing duties on Moroccan phosphate fertilizers accused of being subsidized, OCP could be led to retaliate by suspending its activities on the American market, which would result in a considerable loss of revenue for the company, reports Reuters.

According to the same source, which has the information from two senior officials of the group who requested anonymity, it all started with the complaints filed by the American company Mosaic Co, the world’s leading producer of phosphate concentrates. Following allegations of subsidies on US imports of Moroccan phosphate fertilizers, the US Department of Commerce has launched an investigation.

The consequences of a withdrawal from the US market would be heavy for OCP, which derives significant profits from this trade. Indeed, the United States imported $729 million worth of Moroccan phosphate fertilizers in 2019, while for the same year, OCP exported 9 million tons of fertilizers and generated revenue of around $5.5 billion, the same source said.