In a significant development in the commercial dispute between Morocco’s OCP Group and Mosaic, the latter has recently withdrawn its request for a review of the countervailing duties (CVD) imposed on Moroccan fertilizers in the U.S. This move is likely to have a substantial impact on the American fertilizer market and represents a positive turn for OCP in this case.
On September 10, Mosaic notified the U.S. Department of Commerce (DOC) of its decision to withdraw its request for a third annual administrative review of the CVD on certain phosphate fertilizer imports from Morocco. OCP has since acknowledged this update and anticipates that the DOC will soon issue a notice in the Federal Register to cancel the review process that began weeks earlier.
OCP is currently assessing the potential impact of this decision on the final rates applicable to fertilizer imports in the U.S. for 2023. Initially set at 19.95%, the CVD rates were provisionally reduced to 7.42%. The group is hopeful that this rate will be further reduced following the ongoing appeals process with the U.S. Court of International Trade.
The final rates for current and future OCP shipments will be determined by administrative reviews that may be requested by Mosaic for 2024 and subsequent years. These rates could also be affected by appeals currently under review by the U.S. Court of International Trade.
OCP expressed optimism that this procedural change might lead to the complete elimination of the CVDs. The group emphasized that these duties hinder American farmers from accessing high-quality fertilizers needed to sustain healthy crop production and compete in global markets. OCP maintains that there is no justification for the CVDs, especially as U.S. production of essential nutrients falls short of meeting domestic demand.
The conflict between OCP and Mosaic began in 2020 when Mosaic accused Moroccan and Russian phosphate fertilizer producers of receiving government subsidies, allegedly distorting competition by offering cheaper products than those made in the U.S. In response, the DOC launched an investigation, and by November 2020, imposed a 19.97% countervailing duty on Moroccan fertilizer imports.
In March 2021, the DOC confirmed these duties, which posed a significant challenge for OCP as it sought to lessen the financial burden. However, in November 2023, after the first administrative review, the DOC reduced the CVD rate to 2.12%. While this was a significant improvement, the dispute continued.
Now, Mosaic’s withdrawal from its review request is seen as a major win for OCP. The DOC is expected to publish a formal notice to terminate the ongoing review, marking a crucial development in the long-standing trade dispute.
