What Others Are Saying
Ever since Mosaic first brought the case, policymakers, farm groups and farmers themselves have expressed strong opposition to these duties...
continuing even after duties were imposed.
TIMELINE
Mosaic files CVD petition
American Farm Bureau Federation letter of support
“America’s farmers are increasingly concerned about their access to an affordable, competitive supply of this crucial fertilizer…. The application of the [phosphate fertilizer] duties…will result in a constricted supply and an imposed higher price for [farmers].”
National Association of Landscape Professionals letter of support
“Because of the Commission’s authority to impose retroactive duties, the petition by The Mosaic Company asking for new and significant duties on phosphate imports from Morocco and Russia will unnecessarily create upward pricing pressure on phosphate that will be felt by our members and their customers immediately if it proceeds to an investigation phase.”
National Cotton Council letter of support
“We respectfully ask that you spare America's cotton producers and other farmers the unnecessary input cost increases that will follow.”
USA Rice letter of support
"In regard to currently low phosphate fertilizer prices, the last four years have seen low prices for nearly all crops and their inputs. Back-to-back wet planting seasons have hampered nutrient applications. Given the downward pricing trends for nearly all raw materials and the farm commodities that depend on them, it is unrealistic to single out two countries, Morocco and Russia, for unfair trade practices.”
Senator Ben Sasse (R-NE) to USITC expressing concern over CVD petition
“U.S. and international demand for the phosphate fertilizer fluctuates with planting seasons and the number of acres planted. It's further affected by weather and field work. These variations in demand should not be factors for determining if countervailing duties should be applied. The phosphate fertilizer industry operates in a highly competitive global market.”
National Sorghum Producers letter of support
"Even the threat of countervailing duties on phosphate imports is creating upward price pressures on this critical nutrient at one of the most challenging economic times in recent history.”
A joint letter to the U.S. Department of Commerce from 8 Farm Belt senators
"Given the financial harm duties on phosphate fertilizers will cause U.S. farmers, we urge the Department of Commerce and U.S. International Trade Commission to deny this petition."
Agricultural Retailers Association letter of support
“Granting this petition will very likely limit fertilizer supply options for America’s farmers and ranchers and increase their input costs.”
Iowa Corn Growers Association letter of support
“Now is not the time for corn farmers to take another hit for factors that are outside of their control. I ask that you deny the petition to impose countervailing duties on phosphorus fertilizers.”
Sen. Jerry Moran (R-KS) asks Commerce secretary nominee, Gov. Gina Raimondo, about the impact of duties on phosphate fertilizers
“I need some reassurance you understand the magnitude and challenge of this issue for everyday farmers and ranchers in this country.”
SENATOR JERRY MORAN (R-KS) · CSPAN · JANUARY 26, 2021
American Soybean Association, National Corn Growers Association, and the National Cotton Council of America letter of support
"It is our view that countervailing duties on these imports will adversely impact the availability of phosphate fertilizer in the United States and adversely affect crop production and farmer livelihoods."
Rep. Tim Ryan (D-OH) to USITC opposing the CVD petition
"The imposition of a countervailing duties would shut out much of the market for phosphorus fertilizers, making it so Mosaic, a company with 74% of the market share, would be the primary fertilizer supplier. This company alone will be unable to meet the demands of U.S. farmers."
Joint Letter to USITC from 11 U.S. Senators
"The imposition of duties between 9.19 and 47.05 percent on phosphate fertilizers would result not only in higher input costs for U.S. farmers but also potentially limit their options for applying necessary crop inputs. Given the unprecedented volatility experienced in the agricultural economy over the past three years, it is especially important to avoid imposing unnecessary duties that will further limit fertilizer options and raise the cost of production for farmers.
Bipartisan Letter to USITC from 17 U.S. Representatives
"While U.S. farmers value domestic supply, U.S. production is highly concentrated, and our understanding is that supplies are effectively controlled by a single U.S. manufacturer, which presents a risky and insecure situation for our farmers. The Covid pandemic and other emergencies have shown us that multiple sources of phosphate products are necessary to ensure the reliability of supply and to meet the logistical needs of farmers around the country."
Duties enter into force against Moroccan and Russian phosphate companies.
United States Court of International Trade accepts to consider OCP’s appeal.
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
”Farmers who expected to be deploying fertilizer, and whose orders drove increased purchases from the only available source (imports), needed that fertilizer even though the weather would later prevent them from applying it.”
Sen. Charles Grassley (R-IA) asks U.S. Attorney General Merrick Garland to investigate concerns raised by America’s farmers about possible anti-competitive activity and market manipulation in the fertilizer industry
“These tariffs create additional financial hardship for farmers who are already dealing with tight fertilizer supplies across the country.”
National Corn Growers Association: “Corn Growers to Mosaic: Stop Engaging in Irresponsible Corporate Behavior and End Fertilizer Tariffs”
“Mosaic’s posture to date has been a masterpiece of irresponsible corporate social responsibility…. We ask that you voluntarily withdraw your countervailing duties and allow critical supply back into the U.S. at a time of inadequate supplies and soaring phosphate prices.”
LETTER FROM 19 SENATORS ASKS PRESIDENT BIDEN TO HELP LOWER COST OF FERTILIZER
"Fertilizer is a primary input and major expense for producers across the country, and price increases will have a significant effect on farm profitability and the prices of food and consumer products."
BIPARTISAN, BICAMERAL GROUP OF 86 ASK U.S. INTERNATIONAL TRADE COMMISSION TO RECONSIDER DUTIES ON IMPORTED MOROCCAN PHOSPHATE FERTILIZER
“We urge you to reconsider the duties placed on phosphate fertilizer products imported from Morocco…. The conditions surrounding on-farm expenses in the United States have dramatically changed since the U.S. International Trade Commission’s (ITC) determinations in the countervailing duty investigation of phosphate fertilizers from Morocco.”
U.S. Senators from Iowa, Kansas, Nebraska ask USTR Katherine Tai for help ensuring abundant, affordable fertilizer in United States
“Western countries with fertilizer supply problems will be competing for fertilizer from ‘friendly’ countries. We cannot be left scrambling in 2023 and beyond to find crop nutrients, we need to begin working today to solve this inevitable challenge.”
Des Moines Register Op-Ed: Tariffs on fertilizers are hurting Iowa farmers and consumers
“Longtime U.S. ally Morocco accounts for about 60% of the imported supply that supports U.S. agricultural producers. Morocco holds close to three-quarters of the world’s phosphate reserves. But in 2020, the U.S. international Trade Commission decided to impose a countervailing duty on phosphate fertilizer from Morocco…. As a result, farmers saw fertilizer prices rise by roughly half from 2020 to 2021 — and these prices are only continuing to rise. Today fertilizer prices are more than double their cost in 2020.”
MEMBERS OF CONGRESS PUSH PRESIDENT BIDEN FOR ACTION ON FERTILIZER TARIFFS
“Currently, a supermajority of the global tradable supply of phosphate fertilizers is subject to U.S. duties. While the United States is a major producer of nitrogen and phosphate, farmers still significantly rely on imports to fully meet demand.”
FARM GROUPS ENCOURAGE BIDEN TO ADDRESS FERTILIZER TARIFFS
“Tariffs imposed on phosphate fertilizers from Morocco in 2021 have had a significant negative financial impact on America’s farmers and ranchers….We strongly encourage the White House to eliminate or reduce fertilizer tariffs. Doing so would make fertilizer more accessible and help American farmers combat global food insecurity.”
AGRI-PULSE OP-ED: FARMING WITH ONE HAND TIED BEHIND OUR BACKS?
“Tariffs on phosphorous fertilizers from Morocco remain in place, driving up input prices for growers…. We need the Biden administration to take immediate steps to eliminate the existing tariffs on phosphorous fertilizers. Such a move would provide immediate relief to farmers who are struggling to pay for these products that are so critical to successful farming.”
IOWA ATTORNEY GENERAL ASKS PRESIDENT TO WAIVE PHOSPHATE FERTILIZER TARIFFS
“I’ve talked to many Iowa farmers and ag groups about the impact of high fertilizer prices. It’s critical that the President act as soon as possible, as growers begin purchasing fertilizer in preparation for the 2023 growing season. These farmers have already suffered enough.”
Sen. Ernst urges Biden administration to eliminate fertilizer tariffs ahead of Iowa visit by Secretary Vilsack and U.S. Trade Representative Tai
“It’s past time we eliminate fertilizer tariffs and negotiate free trade agreements…The existing tariffs on fertilizer are nothing more than a tax on our farmers. They hinder their ability to afford critical nutrients needed to meet the growing demand.”
US Court of International Trade Remands Decision to Dept. of Commerce
Judge Timothy C. Stanceu of the U.S. Court of International Trade described the U.S. Department of Commerce's calculations as "unreasonable" and "nonsensical," remanding the duty order back to the agency.
International Trade Commission to Review Its Ruling on Phosphate Import Tariffs
"Judge Stephen Vaden of the United States Court of International Trade order the International Trade Commission to review its ruling on phosphate import tariffs."
NATIONAL AND STATE PRODUCER ORGANIZATIONS OFFER INPUT TO COMMERCE SECRETARY ABOUT FERTILIZER DUTIES
“High costs and limited availability of fertilizer continue to strain family farms across the United States. [We] urge you to consider the impact of phosphate duties as the Department of Commerce works to reconsider its duty rate calculation.”
Sens. Moran, Marshall & Reps. Mann, Costa Lead Colleagues in Calling on Biden Administration to Reduce Duties on Phosphate Fertilizers
“We ask that Commerce carefully consider and follow the CIT’s decision in Commerce’s recalculation of the subsidy amount, both in its final determination in the investigation and its administrative review. Reducing the subsidy rate would provide welcomed relief for U.S. farm suppliers and their customers, American family farms.”
Department of Commerce Issues Administrative Review Ruling
On May 5, 2023, the Department of Commerce (Commerce) published its Preliminary Results in the Federal Register.
On October 11, 2023, Commerce issued its Post-Preliminary Results. Attached are the calculations for the final determination for OCP S.A. (OCP) and its cross-owned affiliates.
U.S. DOC Announces Results of First Administrative Review of CVDs
OCP welcomes the final results announced by the U.S. Department of Commerce (DOC) in the first administrative review of the countervailing duty order on certain Moroccan phosphate fertilizer imports into the United States. The result is a reduction in the overall tariff rate from 19.97% to 2.12%.
Corn Growers to Commerce: High Tariffs on Fertilizer Imports Causes Hardships for Farmers
Over the past three years, farmers like me across the U.S. have faced record high fertilizer costs made worse by an ill-advised action by the U.S. government that has driven up prices more than 30 percent.
That early 2021 decision, which placed onerous duties on the essential supply of phosphate provided by Morocco to domestic fertilizer manufacturers, has battered the bottom lines of our U.S. farmers and contributed to an increase in what consumers across the country pay for our products.
Agriculture groups call for permanently lower duties on Moroccan fertilizer
More than 50 agriculture organizations are pressing for more predictability in fertilizer supply chains and permanently lower duties on fertilizer imports from Morocco as the Commerce Department and the U.S. International Trade Commission consider further administrative action.
Congressional Leaders Write to ITC Concerns Regarding Countervailing Duties on Phosphate Fertilizer
Congressional leaders write to ITC stating, "We write to express our continued concerns regarding countervailing duties on phosphate fertilizers and the recent remand by the U.S. Court of International Trade of the International Trade Commission's affirmative material injury determination (Consol. Court No. 21-00219, Ct. Int'I Trade Sep. 19, 2023). Specifically, we are concerned that the voices of farmers and agricultural retailers are not being allowed into the record for consideration by the Commission on remand."
ITC Rejects National Corn Grower's Association Letter
On December 15, 2023, the ITC formally rejected a December 7, 2023 letter from the National Corn Grower's Association.
DOC Redetermination of The Mosaic Company et al v. United States, Consol.
Below is the full redetermination of the U.S. Department of Commerce’s Redetermination Pursuant to Court Remand in the above-captioned action.
ITC ISSUES REMAND DECISION
By opinion and order dated September 19, 2023, the U.S. Court of International Trade, remanded the Commission’s final affirmative injury determinations in Phosphate Fertilizersfrom Morocco and Russia, Inv. Nos. 701‐TA‐650‐651 (Final), USITC Pub. 5172 (March 2021).
US DOC ANNOUNCES PRELIMINARY RESULTS OF SECOND ADMINISTRATIVE REVIEW
OCP takes note of the preliminary results announced by the U.S. Department of Commerce (“DOC”) in the second administrative review of the countervailing duty (“CVD”) order on certain Moroccan phosphate fertilizer imports into the United States. If confirmed in the final results of this review expected in October/November, the result would be an increase in the tariff rate from 2.12% to 14.21%
An Update on the CVD on Phosphate Fertilizers
A comprehensive memo outlining the CVD process to date and its impact on US farmers can be found here.
OCP North America Responds to Mosaic's Withdrawal of Request for Third Administrative Review of Phosphate Fertilizer CVD Order
Last week, the Mosaic Company informed the U.S. Department of Commerce that it was withdrawing its request for a third administrative review of the countervailing duty (“CVD”) order on Moroccan imports of phosphate fertilizers to the United States.