About the Duties Hurting Farmers
Farmers are facing insecurity and reduced fertilizer supply.
How did it come to this?
The Process
The countervailing duty (CVD) process is a way for the U.S. government to ensure both domestic and foreign industry is competing on a level playing field. If a U.S. producer believes they’re harmed by foreign imports, they can petition the government. If a government investigation finds that the field is unfair or that domestic industry is being harmed, relief is granted to domestic industry in the form of countervailing duties.
The CVD process typically exists in five phases: 1) Petition; 2) Investigation & Examination; 3) Determination; 4) CVD imposed; and 5) Periodic Review.
Below is an overview of how the process has played out to date, and how an imperfect process paired with flawed arguments and the misapplication of the law has resulted in the duties that are hurting American Farmers.
The Petition
In June 2020, the Mosaic Company, one of the largest phosphate fertilizer producer in the world—and the dominant U.S. producer—filed petitions with the U.S. Department of Commerce (DOC) and International Trade Commission (USITC) for an investigation into—and imposition of countervailing duties (CVDs) on—phosphate fertilizer imports from Morocco and Russia. A much smaller U.S. producer supported Mosaic’s petition after it was filed.
In its filing, Mosaic claimed injury from price drops in 2019. The truth is that those price drops were caused by unpredictable shifts in supply and demand from historic flooding and weather events in late 2018 and the first half of 2019, which dramatically reduced planted acreage in 2019 and therefore reduced farmer demand for fertilizer.
The Decision
The DOC made a final decision to impose duties of 19.97% on Moroccan phosphate fertilizers as of April 2021. It also imposed duties on Russian imports. Now, critical sources of imported supply are dramatically reduced. At the same time, after significant concentration of the phosphate fertilizer industry over the last 20 years, only four domestic producers remain and total domestic production has shrunk.
Today, Mosaic dominates with over 70% of U.S. production of phosphate fertilizers.
With China already excluded from the U.S. phosphate market by other U.S. tariffs, Saudi Arabia—which was not included in Mosaic’s petition—is the only other major source of volumes for import into the United States. Notably, Mosaic has a commercial partnership with the major Saudi phosphate fertilizer producer.
THE AFTERMATH
The resulting supply shocks have driven a surge in phosphate fertilizer prices at the farm gate.
In 2020, Mosaic exported 62% of their phosphate fertilizer products at a time when their production had decreased by 20% drop. While they have reduced their exports, the company still exports over 40% of a considerably-reduced total production. Other smaller foreign producers have tried to pick up the slack, but they cannot meet the full need of the U.S. market.
The urgent and increased necessity for reliable supply of quality imports has never been more clear.
the appeal
OCP has appealed the DOC and USITC decisions based on the strong belief that duties were imposed based on incomplete and inaccurate information, faulty arguments, misapplication of the law and a misreading of the dynamics of fertilizer trade in the United States.
OCP is grateful to have the support of those who represent American farmers — producer groups, retailers, members of Congress and others — groups that have strongly and publicly opposed these damaging and unjustified duties. The joint amicus brief from the American Soybean Association, the National Corn Growers Association, the National Cotton Council of America, the National Sorghum Producers and the Agricultural Retailers Association shows just how much American agriculture has been injured by these duties, and the deep flaws in the arguments that led to them.
the court responds
In January 2025, the U.S. Court of International Trade issued a second remand order on the U.S. Department of Commerce’s (“DOC”) previous determination that Moroccan fertilizer products imported into the United States would be subjected to a countervailing duty (“CVD”), with the court criticizing Commerce again for an “absurd” analysis. The DOC must file a second redetermination by April 8 (this deadline may be extended).
In September 2023, the U.S. Court of International Trade issued a remand order on the International Trade Commission’s (ITC) deeply flawed determination that imports of phosphate fertilizer from Morocco are injuring the U.S. fertilizer industry.
OCP prevailed on its objections to a key ITC finding that, according to the court, was “factually unsupported” and yet “undergirds the Commission’s determination across all statutory factors.” The ITC rejected the court’s reasoning and stood by their earlier findings.
The Court of International Trade is expected to respond to the two agencies’ redeterminations in 2025. If the court rejects the agencies’ arguments, further remands would be ordered, and the judicial process could be further delayed and drawn out via appeals.
the administrative review
In another aspect of this complex process, the DOC conducts each year if requested an annual “administrative review” of the CVD order to see whether new facts will lead the agency to change the CVD rates retroactively.
In November 2023, the DOC announced the results of its first administrative review of the CVD order, which resulted in a reduction in the overall tariff rate on Moroccan fertilizer imports from 19.97% to 2.12%.
This new and far lower rate was the final tariff rate retroactively applied to 2021 imports and served as the new cash deposit rate required to be paid to U.S Customs for imports occurring from November 2023 until November 2024.
The retroactive impact of these administrative review rate adjustments creates enormous uncertainty and financial risk for importers and their U.S. customers. This proved the case in November 2024 when the latest DOC administrative review increased the tariff rate on Moroccan fertilizer imports to 16.60%. This rate was applied retroactively as the final tariff rate for imports in 2022 as well as the cash deposit rate going forward for imports from November 2024 until at least 2026 when a next administrative review may be completed.
In response to the DOC’s latest decision, OCP stated that, despite the detailed and robust evidence and arguments provided during the DOC’s review, the DOC issued a deeply flawed decision. The increase in the CVD rate results from the DOC’s use of inadequate methodologies that are not consistent with U.S. law and regulations, and determinations that are not supported by the record evidence.
OCP will continue its ongoing appeals against these tariffs in the U.S. Court of International Trade, and has recently initiated an appeal of this latest DOC decision. In the meantime, OCP will continue its full and transparent cooperation with U.S. agencies as they conduct any future analyses. U.S. farmers need additional reliable, high-quality providers of sustainable phosphate fertilizers to ensure the supply chain resiliency that enables them to feed their fellow citizens and the wider world.
the future
OCP continues to believe that there is no justification for any tariffs on its U.S. fertilizer imports.
OCP is grateful to all those voices representing U.S. farmers who continue to speak out loudly in opposition to these duties.
While OCP is eager to return to the U.S. market, given the inherent uncertainty in the CVD appeals and annual review process the company has little to no choice but to continue defending itself and working through the process to its conclusion.
OCP remains eager to resume serving as a reliable, high-quality provider of sustainable phosphate fertilizers that are essential to enabling American farmers to feed their fellow citizens and the wider world.